Merger Enforcement Guidelines

Draft for Consultation
March 2004

PDF: 178 KB

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Table of Contents

Purpose

Part 1 – Definition of Merger
Control
Significant Interest

Part 2 – The Anti-Competitive Threshold
Overview
Lessening of Competition
Prevention of Competition
Substantiality

Part 3 – Market Definition
Overview
Product Market Definition
Geographic Market Definition

Part 4 – Market Share and Concentration
Participating in the Market Through a Supply Response
Calculating Market Shares
Market Share and Concentration Thresholds

Part 5 – Anti-Competitive Effects
Unilateral Effects
Coordinated Effects

Part 6 – Entry
Conditions of Entry
Types of Barriers to Entry

Part 7 – Countervailing Power

Part 8 – The Efficiency Exception
Overview
Gains in Efficiencies
Anti-Competitive Effects
The Trade-Off

Part 9 – Failing Firm
Business Failure and Exiting Assets
Alternatives to the Merger
Timing

Part 10 – Vertical Mergers
Increased Barriers to Entry
Upstream Effects Facilitated by Forward Integration into Retail

Part 11 – Conglomerate Mergers

Appendix I: Additional Information on Sunk Costs
Market Specific Assets and Learning
Product Differentiation
Strategic Behaviour

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Purpose

These guidelines are issued to provide general guidance on the Competition Bureau's analytical approach to merger review. Merging parties are encouraged to contact the Competition Bureau early to discuss proposed transactions. The particular facts of a case will determine how the Competition Bureau assesses a proposed transaction and may sometimes require different methodologies. Merging parties should obtain appropriate legal advice when contemplating a possible transaction. The final interpretation of the Competition Act rests with the Competition Tribunal and the Courts.