Annual Report - Message from the Commissioner

Unquestionably, 2000-2001 was a period of intense activity and achievement for the Competition Bureau. In addition to our ongoing work, three major issues required our particular attention.

The first of these involved proposed amendments to the Competition Act brought forward in four private members' bills. The amendments, designed to ensure the continuing effectiveness of Canada's competition policy in today's rapidly changing global marketplace, dealt with a range of issues, including deceptive mail contests, the dispute resolution process and the powers of the Competition Tribunal. To determine the level of support for the amendments, the Bureau held broad-based consultations, inviting submissions and holding 12 roundtable sessions across Canada. The Public Policy Forum analyzed the results of these consultations and published its results in a report released in December 2000. The Minister of Industry examined the report and tabled a bill to amend the Competition Act in April 2001 (see page 35 for further details).

The second issue concerned abuse of dominance in the airline industry. During 2000-2001, the Bureau continued its efforts to protect competition in the domestic industry, but serious concerns about abuse of dominance in this area remain. We received numerous complaints, many from consumers concerned about high air fares and deteriorating service (although these do not raise a concern under the Act). As well, nine airlines complained that Air Canada had abused its dominant position through predatory or exclusionary behaviour. Seven of these complaints have been settled or are currently being examined. Two, however, resulted in formal inquiries under the Act, and these led the Bureau to file an application with the Competition Tribunal in March 2001 to prevent Air Canada from engaging in anti-competitive behaviour (see page 28 for further details).

Third, the Bureau was involved in a major test case on mergers -- the acquisition of ICG Propane Inc. by Superior Propane Inc. in Atlantic Canada. We view this case seriously because the merger, if successful, would have a significant negative impact on consumers, contrary to the purpose of the Competition Act, namely "to provide consumers with competitive prices and product choices." The case went before the Competition Tribunal in early 1999 and is still before the courts (see page 21 for further details).

On top of its work on these key issues, the Bureau played a major role on the international stage in 2000-2001, markedly increasing its cooperation with competition agencies in other countries. In addition, the Bureau was involved in a wide range of criminal and civil cases concerning offences under the Competition Act, and continued to vigorously promote competition. Last, but by no means least, the Bureau made every effort to inform and assist Canadian consumers through speeches and conferences, and its Web site, information bulletins, news releases and 1-800 number.

None of this impressive activity would have been possible without the hard work and enthusiasm of Bureau staff. Their commitment will continue to be invaluable as we take on the challenges and opportunities of the forthcoming year.

Konrad von Finckenstein, QC