Annual Report 1996/97 - Introduction

Despite the fact that significant and rapid changes are taking place in Canadian society and the Canadian economy, with regard to competition issues, Canada's fundamental policy has remained unchanged. As much as we may be impressed or even awed by the exponential growth of the World Wide Web and the seemingly limitless possibilities of contemporary communications media, certain continuities still apply.

The Competition Act is still the framework law which governs the Canadian approach to competition issues. Likewise, the mandate of the Competition Bureau remains constant: to obtain compliance with the Act, and foster a climate of competition for the overall benefit of the Canadian economy and marketplace. The guiding principles which govern Bureau activities — transparency, fairness, timeliness and predictability — remain relevant in the age of globalization and the Internet.

The true challenge is how to continue to fulfil the Bureau's mandate in the presence of evolving contemporary realities. To this end, the Bureau is constantly updating its approach and activities; a process reflected in this Annual Report, which provides an overview of Bureau activity from April 1, 1996, to March 31, 1997.

The Bureau crafted and recommended amendments to the Competition Act, to keep it relevant and effective in a changing world. Amendments to the Competition Act and the Competition Tribunal Act were tabled in the House of Commons; the amending process was begun again in a new session of Parliament and continues as this Report goes to press.

The continued growth and evolution of both the national and global economies were reflected in merger activity, which increased for the third consecutive year. Merger examinations begun during 1996-97 increased by 40 percent, to an all-time high of 319.

Burgeoning international commerce caused the number of cross-border cases to increase in number and complexity. The international dimension of Bureau enforcement activities, as it worked with other countries' competition agencies, underlined the continued need for enhanced international cooperation, consultations, coordinated enforcement actions, and dispute avoidance.

Deregulation in key sectors such as telecommunications, energy and finance led to a surge in competitive activity. The Bureau was particularly active in these fields, as the following pages document.

Education activities continued to grow in importance, and programs to encourage compliance with the Competition Act continued to be a key Bureau activity. The Bureau's web site has become a major element in its communications strategy, and an increasing number of communications and complaints are received by e-mail. Deceptive marketing, particularly via telecommunications media, was a special focus of Bureau activity.

Toward the end of the reporting period, a new Director of Investigation and Research (DIR) was appointed. Konrad von Finckenstein, Q.C., joined the Bureau on February 4, 1997.

The following pages cover Bureau enforcement activities, as well as its work in the education, administrative and compliance areas. The key to the Competition Bureau's future activity is its continuing desire to obtain compliance with the Competition Act, through a wide and flexible array of tools and techniques, in order to foster an environment of competition and confidence in the marketplace.