Supreme Court Confirms Approach to Abuse of Dominance Cases

Ottawa, May 10, 2007 – Today, the Supreme Court of Canada denied Canada Pipe’s application for leave to appeal the Federal Court of Appeal decisions in the Commissioner of Competition v. Canada Pipe Company Ltd . Last June, the Competition Bureau successfully appealed the Competition Tribunal's ruling that Canada Pipe Company Ltd. had not abused its dominant position in Canada. Subsequently, Canada Pipe sought leave to appeal that decision to the Supreme Court of Canada.

“Now that the appeal process is over, we are happy to move forward and have the case reconsidered by the Tribunal” said Commissioner of Competition Sheridan Scott. “The Supreme Court’s decision not to grant leave leaves intact the important guidance provided by the Federal Court of Appeal’s decision with respect to the analysis that the Tribunal must undertake when deciding whether a firm is abusing its dominant position.”

The Bureau appealed the Tribunal's decision on the basis that the Tribunal erred in concluding that Canada Pipe’s loyalty program does not constitute an anti-competitive act by failing to apply the correct test. The Bureau also believed that the Tribunal erred by failing to consider whether the relevant markets would likely be substantially more competitive but for the loyalty program.

“Clarity of the law with respect to the exclusive dealing and abuse of dominance provisions is of fundamental importance to our enforcement of the Competition Act ,” said Commissioner Scott.

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

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