Regulations Respecting Anti-Competitive Acts of Persons Operating a Domestic Service

SOR/2000-324

COMPETITION ACT

Registration 2000-08-23

Regulations Respecting Anti-Competitive Acts of Persons Operating a Domestic Service

P.C. 2000-1320  2000-08-23

Her Excellency the Governor General in Council, on the recommendation of the Minister of Industry and the Minister of Transport, pursuant to subsection 78(2)Footnote a of the Competition ActFootnote b, hereby makes the annexed Regulations Respecting Anti-Competitive Acts of Persons Operating a Domestic Service.

Anti-competitive Acts

 For the purposes of paragraph 78(1)(j) of the Competition Act, the following acts or conduct of a person operating a domestic service, as defined in subsection 55(1) of the Canada Transportation Act, are anti-competitive acts:

  • (a) operating capacity on a route or routes at fares that do not cover the avoidable cost of providing the service;

  • (b) increasing capacity on a route or routes at fares that do not cover the avoidable cost of providing the service;

  • (c) using a low-cost second-brand carrier in a manner that is described in paragraph (a) or (b);

  • (d) pre-empting airport facilities or services that are required by another air carrier for the operation of its business, with the object of withholding the airport facilities or services from a market;

  • (e) to the extent not governed by regulations respecting take-off and landing slots made under any other Act, pre-empting take-off or landing slots that are required by another air carrier for the operation of its business, with the object of withholding the take-off or landing slots from a market;

  • (f) using commissions, incentives or other inducements to sell or purchase its flights for the purpose of disciplining or eliminating a competitor or impeding or preventing a competitor’s entry into, or expansion in, a market;

  • (g) using a loyalty marketing program for the purpose of disciplining or eliminating a competitor or impeding or preventing a competitor’s entry into, or expansion in, a market; and

  • (h) altering its schedules, networks, or infrastructure for the purpose of disciplining or eliminating a competitor or impeding or preventing a competitor’s entry into, or expansion in, a market.

Essential Facilities and Services

  •  (1) For the purposes of paragraph 78(1)(k) of the Competition Act, facilities and services that are essential to the operation in a market of an air service, as defined in subsection 55(1) of the Canada Transportation Act, are those

    • (a) that are required in order to provide a competitive air service;

    • (b) that cannot reasonably or practicably be purchased, acquired, provided or replicated by another air carrier on its own behalf;

    • (c) that are effectively controlled by the air carrier who denies access to them or refuses supply of them; and

    • (d) that can be feasibly provided to another air carrier, having regard to operational or safety considerations, or legitimate business justifications of the air carrier referred to in paragraph (c).

  • (2) For the purpose of subsection (1), facilities and services may include, but are not limited to, take-off and landing slots, interline arrangements, airport gates, loading bridges, counters and related airport facilities, maintenance services, and baggage handling infrastructure, equipment and services.

Coming into Force

 These Regulations come into force on the day on which they are registered.

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