Annual Report of the Commissioner of Competition for the year ending March 31, 2003

Message from the Commissioner

The past year was one of surprises for the Bureau, both pleasant and unpleasant.

On the positive side, the Bureau was extremely pleased with the speedy passage of Bill C-23, which brought in changes to the Competition Act and the Competition Tribunal Act. This vital economic legislation, which came into force on June 21, 2002, strengthens Canada's competition law and gives the Bureau better tools to ensure individuals and organizations comply with the Act, to the benefit of both consumers and businesses.

Another plus was the immediate success of the International Competition Network (ICN), a network of private and public sector competition practitioners from around the world. The Bureau played a leading role in getting the ICN off the ground. The ICN held its first annual conference in Naples, Italy, in September 2002. More than 200 anti-trust experts from 59 jurisdictions agreed to work to reduce the differences in how countries review mergers and to share best practices for advocating the benefits of competition.

A disappointment for the Bureau came on January 31, 2003, when the Federal Court of Appeal dismissed the Bureau's challenge of the acquisition of ICG Propane Inc. by Superior Propane Inc. The Bureau had challenged this merger on a number of grounds, including that the efficiencies it generated did not justify creating a monopoly. The Bureau has decided not to appeal the Court's decision but will support a legislative change to ensure that the Competition Tribunal only considers efficiencies created in an anti-competitive merger when they are of benefit to consumers.

Another key Bureau activity in 2002-2003 was its ongoing work to clarify the rules under which a dominant airline must operate. The Bureau is currently awaiting a decision from the Competition Tribunal on this issue.

As I look to the year ahead, I see several challenges. For one, the Bureau will support the Government's consultations on amending the Competition Act, particularly key civil sections. This will involve public discussion and roundtables with key stakeholders. As well, the Bureau will continue its fight against hard-core consumer fraud and deception, to ensure that Canada does not become a haven for scam artists and their fraudulent claims. In both these cases, however, the Bureau will only be effective with a stable, adequate and permanent resource base.

Finally, I would like to pay tribute to the Competition Bureau's staff. Once again their efforts and commitment have made our achievements possible.

Konrad von Finckenstein, QC