12.3 Canadian Competition Policy LO 4
Canadian competition policy is designed to restrict mergers and trade
practices that unduly lessen competition.
In the past, mergers harmful to the public interest were criminal
offences and difficult to prosecute. The current legislation allows civil
cases to be brought against firms, making prosecution less difficult.
The Competition Act of 1986 established a Competition Tribunal to
adjudicate cases brought to it by the Competition Bureau.
In the case of mergers, the Competition Bureau and Tribunal must
consider whether the merger will generate cost reductions that will
offset the effects of any lessening of competition.