revenues on a total of 19 routes. The Competition Bureau saw this
venture as a clear effort to create monopoly power that would raise prices
to consumers. Of the 19 routes included in the proposed joint venture,
the Competition Bureau estimated that the market share of the joint
venture would be 100 percent on 10 of the routes, and would average 68
percent on the remaining 9 routes. The Competition Bureau filed an
application with the Competition Tribunal to block the joint venture.
After a series of discussions between the two airlines and the
Competition Bureau, the airlines agreed to suspend their joint venture, at
least temporarily.
A high-profile example of price fixing also illustrates an application of the
Competition Act. In 2017, Loblaws grocery store admitted to participating
for 14 years with other grocery businesses in a scheme to raise and fix the
price of packaged bread. By admitting to this behaviour, Loblaws received
immunity from any legal action. The Competition Bureau then began an
investigation with the potential for prosecution of the other grocery
businesses, but as this book went to press in the fall of 2018, these
businesses were claiming their innocence.