The Reforms of 2009
For many years, Canadian legislation provided substantial protection to
consumers against the misuse of market power by large firms. With the
1986 Competition Act it also provides substantial protection against the
creation, through mergers, of market power that is not justified by gains
to efficiency or international competitiveness.
Canadian competition policy continues to evolve. In 2009, the Competition
Act was amended to:
increase the penalties for deceptive marketing and empower the
courts to award restitution to victims of false advertising;
create a more effective mechanism for the criminal prosecution of
significant cartel agreements;
introduce a two-stage merger review process to improve efficiency
and effectiveness; and
allow the Competition Tribunal to assign monetary penalties to
companies who abuse a dominant position in the marketplace.A recent example illustrates the kind of market developments that attract
the attention of the Competition Bureau. In 2011 Air Canada and a U.S.
airline, United Continental, announced their plans to create a “joint
venture” on a number of air routes between major U.S. and Canadian
cities. The joint venture would allow the two airlines to share costs and