Competition Act (R.S.C., 1985, c. C-34)

Act current to 2015-06-09 and last amended on 2015-03-09. Previous Versions

Specialization Agreements

Marginal note:Definitions

 For the purposes of this section and sections 86 to 90,

“article”

« article »

“article” includes each separate type, size, weight and quality in which an article, within the meaning assigned by section 2, is produced;

“registered”

« inscrit »

“registered” means registered in the register maintained pursuant to section 89;

“specialization agreement”

« accord de spécialisation »

“specialization agreement” means an agreement under which each party thereto agrees to discontinue producing an article or service that he is engaged in producing at the time the agreement is entered into on the condition that each other party to the agreement agrees to discontinue producing an article or service that he is engaged in producing at the time the agreement is entered into, and includes any such agreement under which the parties also agree to buy exclusively from each other the articles or services that are the subject of the agreement.

  • R.S., 1985, c. 19 (2nd Supp.), s. 45.
Marginal note:Order directing registration
  •  (1) Where, on application by any person, and after affording the Commissioner a reasonable opportunity to be heard, the Tribunal finds that an agreement that the person who has made the application has entered into or is about to enter into is a specialization agreement and that

    • (a) the implementation of the agreement is likely to bring about gains in efficiency that will be greater than, and will offset, the effects of any prevention or lessening of competition that will result or is likely to result from the agreement and the gains in efficiency would not likely be attained if the agreement were not implemented, and

    • (b) no attempt has been made by the persons who have entered or are about to enter into the agreement to coerce any person to become a party to the agreement,

    the Tribunal may, subject to subsection (4), make an order directing that the agreement be registered for a period specified in the order.

  • Marginal note:Factors to be considered

    (2) In considering whether an agreement is likely to bring about gains in efficiency described in paragraph (1)(a), the Tribunal shall consider whether those gains will result in

    • (a) a significant increase in the real value of exports; or

    • (b) a significant substitution of domestic articles or services for imported articles or services.

  • Marginal note:Redistribution of income does not result in gains in efficiency

    (3) For the purposes of paragraph (1)(a), the Tribunal shall not find that an agreement is likely to bring about gains in efficiency by reason only of a redistribution of income between two or more persons.

  • Marginal note:Conditional orders

    (4) Where, on an application under subsection (1), the Tribunal finds that an agreement meets the conditions prescribed by paragraphs (a) and (b) of that subsection but also finds that, as a result of the implementation of the agreement, there is not likely to be substantial competition remaining in the market or markets to which the agreement relates, the Tribunal may provide, in an order made under subsection (1), that the order shall take effect only if, within a reasonable period of time specified in the order, there has occurred any of the following events, specified in the order:

    • (a) the divestiture of particular assets, specified in the order;

    • (b) a wider licensing of patents or registered integrated circuit topographies;

    • (c) a reduction in tariffs;

    • (d) the making of an order in council under section 23 of the Financial Administration Act effecting a remission or remissions specified in the order of the Tribunal of any customs duties on an article that is a subject of the agreement; or

    • (e) the removal of import quotas or import licensing requirements.

  • R.S., 1985, c. 19 (2nd Supp.), s. 45;
  • 1990, c. 37, s. 32;
  • 1999, c. 2, s. 37.