Study of the Historical Cost of Proceedings Before the Competition Tribunal: Abstract

Study of the Historical Cost of Proceedings Before the Competition Tribunal

(PDF: 119 KB)

By Richard M. Wise, FCA and Sheri-Anne Doyle, CA
Wise, Blackman

As part of its continuing process of potential legislative development, the Competition Bureau has been considering the possibility of introducing private rights of access to the Competition Tribunal. The proposal would limit such rights to conduct involving essentially private matters between buyers and their suppliers, namely section 75 (refusal to deal) and section 77 (exclusive dealing, tied selling and market restriction).

As the feasibility of private action depends in part on the costs, the Competition Bureau commissioned Wise, Blackman, an independent firm of Chartered Accountants, to determine how much it has actually cost the Bureau to bring such cases forward in the past, although it was recognized that each case was unique and might not be typical of the kind of case that might be brought through private action.

Wise, Blackman examined cost data for the six cases involving sections 75 and 77 which have been contested before the Competition Tribunal (or its predecessor, the Restrictive Trade Practices Commission) since 1977: BBM Bureau of Measurement, Chrysler Canada Ltd., The NutraSweet Company, Xerox Canada Inc., Tele-Direct (Publications) Inc. and Warner Music Canada Ltd.

The costs measured included salaries and wages of Bureau staff and Department of Justice staff, experts' fees, fees of external legal counsel, travel, overhead and various other costs. (The costs borne by the Competition Tribunal were not included, nor were the costs of the defendants or intervenors.)

The estimated cost incurred by the Bureau in investigating and prosecuting the six cases ranged from $208K to $2.7M, the average cost slightly exceeding $1M.