12. 3 Canadian Competition Policy
The least stringent form of government intervention is designed neither
to force firms to sell at particular prices nor to regulate the conditions of
entry and exit; it is designed, instead, to create conditions of competition
by preventing firms from merging unnecessarily or from engaging in anti-
competitive practices, such as colluding to set monopoly prices. This is
referred to as competition policy.The Canadian Competition Act of 1986
Canadian competition policy began in the late 1890s and evolved
gradually over the next half-century. By the 1950s, the following three
broad classes of activity were illegal:Price-fixing agreements that unduly lessen competition;
Mergers or monopolies that operate to the detriment of the public
interest; and
“Unfair” trade practices.After various revisions to the policies, the Competition Act of 1986 came
into effect. The Act allowed civil rather than criminal actions to be brought
against firms for alleged offences in the three categories listed above. This
change was important because in civil cases the standard of proof is less