Archived — Competition Bureau Quarterly Report for the period ending March 31, 2015

The Competition Bureau’s Quarterly Report presents statistics relating to a variety of intake measures, merger and non‑merger related enforcement matters, as well as advocacy, outreach and partnership initiatives. This Quarterly Report is a preliminary report that sets out the general performance results each quarter for the Bureau and supersedes all previous Quarterly Reports made by the Bureau relating to the content described herein. The figures contained within this report are subject to adjustments in future publications.

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Table 1: Intake
Measure 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
Complaints and information requests 14,515 4,160 3,111 3,220 3,434 13,925 Complaints and questions submitted to the Bureau that relate to the Bureau’s four statutes (Competition Act, Consumer Packaging and Labelling Act, Textile Labelling Act and Precious Metals Marking Act).
Media requests 598 114 117 154 147 532 Media requests to the Bureau.
Textile Labelling CA Identification number applications 770 210 193 165 198 766 The CA Identification number (CA Number) is an identification number registered for the exclusive use of a Canadian dealer on the label of a consumer textile article in place of a name and postal address (as per the Textile Labelling Act).

Enforcement — Non Merger

The Competition Bureau enforces both criminal and civil provisions of Canada’s Competition Act aimed at addressing anti‑competitive practices and misleading advertising as well as the Consumer Packaging and Labelling Act, the Precious Metals Marking Act or the Textile Labelling Act.

Table 2.0: Investigative stage
Measure 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
Immunity markers granted to applicants 82 4 10 9 5 28 Number of immunity markers the Cartels and Deceptive Marketing Practices Branch granted.
Leniency markers granted to applicants 40 3 5 3 10 21 Number of leniency markers the Cartels Directorate granted.
Investigations commenced 40 8 10 18 18 54 Investigations and compliance assessment matters that were "opened". Investigations include matters on which inquiries have been commenced.
concluded 28 16 13 7 14 50 Investigations and compliance assessment matters that were "closed".
total ongoing 104 116 108 105 116 120 Investigations ongoing (i.e. matter not closed) at the end of the previous period. Investigations include matters on which inquiries have been commenced (as of the 1st day of reporting period).
Inquiries commenced 16 1 1 6 0 8 Investigation for which an inquiry has been commenced pursuant to s. 10 of the Competition Act.
discontinued 11 1 2 0 1 4 Inquiries discontinued by the Commissioner. This measure does not include inquiries closed for reasons other than discontinuance.
total ongoing 65 70 70 69 75 74 Investigation for which an inquiry has been commenced pursuant to s. 10 of the Competition Act, regardless of when commenced, as long as inquiry is ongoing (as of the 1st day of reporting period).
Search warrants 35 0 0 16 26 42 Number of search warrants issued.
Section 11 orders 7 0 0 13 6 19 A section 11 order is an order issued by a judge under section 11 of the Competition Act. This statistic includes all section 11 orders issued including when multiple orders are issued for a single investigation during the reporting period.
Investigations referred to the Public Prosecution Service of Canada 2 0 0 4 1 5 Investigations referred to the Public Prosecution Service of Canada for consideration and action.

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Table 2.1: Resolutions
Measure 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
Alternative Case Resolutions 7 4 5 5 11 25 Investigations that raised an issue under the Competition Act, the Consumer Packaging and Labelling Act, the Precious Metals Marking Act or the Textile Labelling Act, which were resolved outside of proceedings before the Court or Competition Tribunal. Alternative Case Resolutions include: the adoption of corporate compliance programs, voluntary codes, information contacts, information letters, warning letters, stand still letters compliance meetings and undertakings.
Registered Consent Agreements 3 0 0 3 1 4 All Consent Agreements registered pursuant to section 74.12 or 105 with the Competition Tribunal or courts.
Convictions without Guilty Pleas 5 1 0 0 0 1 All convictions, includes sections 65 and 66 under the Competition Act.
Guilty pleas 11 4 1 1 0 6 The number of guilty pleas made by individuals or companies for an offence under the Competition Act, the Consumer Packaging and Labelling Act, the Precious Metals Marking Act or the Textile Labelling Act.
Prohibition order with convictions 0 0 0 0 0 0 All prohibition orders with convictions (subsection 34(1)) under the Competition Act.
Prohibition order without convictions 1 0 0 0 0 0 All prohibition orders without convictions (subsection 34(2)) under the Competition Act.
Interim injunctions 0 0 0 0 0 0 All interim injunctions (section 33) under the Competition Act.
Table 2.2: Contested matters — Before the courts or Competition Tribunal
Measure 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
Matters currently before the Competition Tribunal 6 5 5 5 4 4 Applications brought by the Commissioner related to substantive matters before the Competition Tribunal where applications were filed but do not include Consent Agreements registered pursuant to sections 74.12 or 105. This excludes interim steps in a proceeding or Rescission or Variation of a Consent Agreement or Order under sections 74.13 and 106. (excluding private access)
Matters currently before the Courts 20 17 16 16 18 18 Proceedings related to substantive matters before the courts where proceedings were filed. This excludes interim steps in a proceeding or Rescission or Variation of a Consent Agreement or Order under sections 74.13 and 106.
Table 2.3: Outcomes
Measure 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
Total fines imposed (millions) $55.7M $1.7M $2.45M $4.5M 0 $8.65M Total amount of fines imposed upon companies and individuals by the courts.
Total bid-rigging fines imposed (millions) $49.2M 0 $2.45M $4.5M 0 $6.95M Total amount of bid-rigging fines imposed. This statistic is included in “Total fines imposed”.
Individuals sentenced 6 3 0 0 0 3 The number of individuals sentenced under the Competition Act.
Companies sentenced 9 2 1 1 0 4 The number of companies sentenced under the Competition Act.
Combined jail time imposed (months) 30 months 32 months 0 0 0 32 months Total amount of jail time imposed.
Total administrative monetary penalties (AMPs) (millions) $0.500 0 0 $10M 0 $10M Total amount of AMPs imposed by the Competition Tribunal or courts.
Total restitution  (millions) 0 $0.185 0 $1.5M $5.42M $7.11M Total amount of restitution imposed by the Competition Tribunal or the Courts.
Final orders issued by the Competition Tribunal 1 0 0 0 0 0 All Orders issued under sections 74, 75, 76, 77, 79, 81, 82, 83, 84, 86, 87, 90.1, 92.  This includes orders issued under sections 74.1, 74.111 and 92.1, Temporary Orders, and Rescission or Variation of a Consent Agreement or Order under sections 74.13 and 106.

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Enforcement — Merger Related Matters

Under the Competition Act, mergers and proposed mergers of all sizes and in all sectors of the economy are subject to review to determine whether they have resulted, or will likely result, in a substantial lessening or prevention of competition.

Table 3.0: Matters (all)
Measure 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
Examinations
Commenced Total 230 92 61 61 41 255 Includes all merger reviews that were opened during the period.
Pre-Merger Notification filings & Advance Ruling Certificate requests 218 88 59 56 37 240 Pre-Merger Notifications (PMNs) filed pursuant to subsection 114(1) of the Competition Act and Advance Ruling Certificate (ARC) requests made pursuant to section 102 of the Competition Act. Includes matters where either a PMN filing or an ARC request, or both occur.
Other examinations 12 4 2 5 4 15 Matters where no PMN or ARC request was received.  Includes Investment Canada applications, Heritage Canada applications, complaints and reviews of non-notifiable mergers initiated by the Mergers Directorate.
Concluded Total 233 77 57 61 50 245 Merger reviews that were completed during the period.
No issues under the Act 221 73 56 56 46 231 Merger reviews that were completed with no issues under the Competition Act.
With issues under the Act 8 2 1 3 3 9 Does not include ongoing matters before the Competition Tribunal. Concluded with monitoring.
Transactions abandoned for reasons unrelated to the Commissioner’s position 4 2 0 2 1 5 Merging parties abandon their proposed merger for reasons other than the Bureau’s views on the proposed merger.
Total Ongoing Merger Reviews 15 12 27 31 32 24 Merger reviews ongoing (i.e. matter not closed) at the end of the previous period (as of the 1st day of reporting period).
Inquiries
Commenced 3 0 1 0 2 3 Matters for which an inquiry has been commenced pursuant to s. 10 of the Competition Act.
Discontinued 0 0 0 0 0 0 Inquiries discontinued by the Commissioner.
Total Ongoing Inquiries 6 9 9 10 10 12 Matters for which an inquiry has been commenced pursuant to s. 10 of the Competition Act, regardless of when commenced, as long as the inquiry is ongoing (as of the 1st day of reporting period).
Table 3.1: Concluded matters (no issues)
Measure 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
Advanced Ruling Certificates Issued 106 45 33 20 22 120 Examinations concluded with the issuance of an Advance Ruling Certificate (ARC) pursuant to section 102 of the Competition Act.
No Action Letters Issued 107 26 21 34 20 101 Examinations concluded with the issuance of a no-action letter (NAL) pursuant to section 114 of the Competition Act.
Other Examinations 8 2 2 3 3 10 Examinations that do not contain a Notification filing or ARC request. These matters are opened for other reasons including Investment Canada applications, Heritage Canada applications, complaints and reviews of non-notifiable mergers initiated by the Mergers Branch.
Total Concluded Matters (No Issues) 221 73 56 57 45 231  
Table 3.2: Concluded & on-going matters (with issues)
Measure 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
Consent Agreements 4 1 0 1 0 2 Consent Agreements registered with the Competition Tribunal pursuant to section 105 of the Competition Act related to mergers.
Transactions Abandoned due to competition concerns 0 1 1 0 0 2 Merging parties abandon their proposed merger after being informed that the transaction raises issues under the Competition Act.
Alternative Case Resolutions 4 0 0 1 1 2 Matters that raised an issue under the Competition Act but were resolved outside of proceedings before the Competition Tribunal. Includes warning letters and undertakings.
Total Concluded Matters (With Issues) 8 2 1 2 1 6  
Matters Before the Competition Tribunal or the courts 1 1 1 1 1 0 Includes ongoing section 92 matters and other matters before the Competition Tribunal (such as section 100 and 106 matters) or the courts.

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Table 3.3: Merger review performance indicators
Measure Complexity 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
Please visit the Competition Bureau Fees and Service Standards Handbook for Mergers and Merger-Related Matters
Matters Concluded (#) Non-Complex 173 59 43 36 32 170 Non-complex mergers are readily identifiable by the clear absence of competition issues, and include transactions where there is no or minimal overlap between parties, assuming properly defined product and geographic markets. Minimal overlap includes a combined post-merger market share of less than 10% in any relevant market.
Complex 46 13 11 20 11 55 Complex mergers involve proposed transactions between competitors, or between customers and suppliers, where there are indications that the transaction may, or is likely to, create, maintain, or enhance market power. Proposed transactions, where the combined post-merger market share of the parties is potentially 35% or more, are generally classified as complex.
Total 219 72 54 56 43 225  
Matters Concluded (%) Non-Complex 79% 82% 80% 64% 74% 76%  
Complex 21% 18% 20% 36% 26% 24%  
Total 100.00% 100.00% 100.00% 100.00% 100% 100%  
Service Standard Met (#) Non-Complex 161 59 41 36 32 168 14 days from the calendar day on which sufficient information has been received by the Bureau
Complex 36 13 9 17 11 50 45 days from the calendar day on which sufficient information has been received by the Bureau except where a Supplementary Information Request is issued, in which case it shall be 30 days
Total 197 72 50 53 43 218  
Service Standard Met (%) Non-Complex 93% 100% 95% 100% 100% 99%  
Complex 78% 100% 82% 85% 100% 91%  
Avg. Review Time (days) Non-Complex 10.38 9.83 10.28 11.39 11.28 10.55  
Complex 36.09 26.63 38 33.7 36.55 33.35  
Supplementary Information Requests Issued 10 1 4 4 3 12 A request made pursuant to subsection 114(2) of the Competition Act.

Advocacy

The Bureau participates in a wide range of activities to promote and advocate the benefits of a competitive marketplace, both in Canada and abroad. This includes recommending that regulators and policy-makers rely on market forces as much as possible and that regulation, where required, limit competition as little as possible. Our Advocacy Portal on the Bureau’s website highlights recent advocacy work conducted by the Bureau.

Table 4: Advocacy
Measure 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
Representations before regulatory bodies 3 3 3 2 1 9 Interventions, submissions and appearances before regulatory bodies pursuant to our advocacy function under sections 125 and 126 of the Competition Act.
Small to medium advocacy interventions 0 7 6 5 6 24 Interventions may include written submissions including letters, calls and meetings with regulatory groups and other stakeholders.
Market studies 0 1 2 0 0 3 Market studies are designed to improve understanding of the effects of competition on the economy.

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Outreach

The Bureau promotes transparency in all its operations by communicating with stakeholders and providing them with up-to-date information and guidance through a wide variety of publications.

Table 5: Outreach
Measure 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
Speeches 169 36 26 46 33 141 The total number of presentations by Bureau officials to external stakeholders, including speaking engagements, information sessions and outreach activities.
Publications 21 11 7 5 3 26 New publications and those that have been revised, including information bulletins, enforcement guidelines, position statements, pamphlets, FAQs and Bureau performance reports.

Partnerships

The Bureau collaborates with domestic and international partners in order to enhance its ability to promote and protect a competitive marketplace.

Table 6: Partnerships
Measure 2013-14
Total
2014-15 Description
Q1 Q2 Q3 Q4 YTD
International
Cooperation Instruments 12 0 0 1 1 2 Memoranda of Understanding (MOUs), cooperation agreements and cooperation arrangements. The number for 2013-14 includes all existing Instruments.
Formal bilateral meetings 4 0 3 1 1 5 Bilateral meetings between the Bureau and foreign law enforcement agencies and competition authorities pursuant to obligations under cooperation instruments.
International Fora meetings and workshops 16 4 2 6 4 16 Meetings and workshops with multinational organizations (e.g., Organisation for Economic Co-operation and Development (OECD), International Competition Network (ICN), International Consumer Protection and Enforcement Network (ICPEN)).
Domestic
Formal domestic partnerships 17 18 18 19 20 20 Number of domestic partnerships in which the Bureau participates. (e.g., the Market Surveillance Administrator of Alberta, the Canadian Radio-television and Telecommunications Commission, Canadian Intellectual Property Office and the Department of Public Works and Government Services) where Memoranda of Understanding or other agreements are in place.

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Glossary

Competition Act: The Competition Act is a federal law governing most business conduct in Canada. It contains both criminal and civil provisions aimed at preventing anti‑competitive practices in the marketplace.

Consumer Packaging and Labelling Act: The Consumer Packaging and Labelling Act is a criminal statute relating to the packaging, labelling, sale, importation and advertising of prepackaged and certain other products.

Precious Metals Marking Act: The Precious Metals Marking Act is a criminal statute relating to the marking of articles containing precious metals.

Textile Labelling Act: The Textile Labelling Act is a criminal statute relating to the labelling, sale, importation and advertising of consumer textile articles.

Matter: An ongoing issue or case that requires action by the Competition Bureau.

Investigation: A civil (non‑merger) or criminal investigation under the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act or the Precious Metals Marking Act.

Compliance Assessment: An examination of a program, activity or individual transaction to ensure that it conforms to legislation, regulations and administrative directives.

Merger Review: A review of a merger under the Competition Act.

Immunity: The first party to disclose to the Competition Bureau an offence not yet detected or to provide evidence leading to the filing of charges may receive immunity from prosecution from the Director of Public Prosecutions of Canada as long as the party co‑operates with the Bureau and any subsequent prosecution.

Leniency: The Competition Bureau may recommend to the Director of Public Prosecutions that cooperating persons who have breached the cartel provisions under the Competition Act, who are not eligible for a grant of immunity, nevertheless be considered for lenient treatment in sentencing.

Competition Tribunal: The Competition Tribunal is a specialized tribunal that combines expertise in economics and business with expertise in law. The Tribunal is a strictly adjudicative body that operates independently of any government department. The cases it hears are complex and deal with matters such as mergers, misleading advertising and restrictive trade practices. The Competition Tribunal should be distinguished from the Competition Bureau. The Competition Bureau investigates complaints and decides whether to proceed with the filing of an application with the Competition Tribunal.

Courts: Under the Competition Act, as well as under the Consumer Packaging and Labelling Act, the Precious Metals Marking Act and the Textile Labelling Act, certain practices may be brought before the courts, which include the Federal Court or the Superior Court of a province. Under the civil regime of the Competition Act, certain practices may be brought for review before the Competition Tribunal, the Federal Court or the superior court of a province.

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