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

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Act current to 2019-06-06 and last amended on 2019-04-03. Previous Versions

PART V[Repealed, R.S., 1985, c. 19 (2nd Supp.), s. 29]

PART VIOffences in Relation to Competition

Marginal note:Conspiracies, agreements or arrangements between competitors

  •  (1) Every person commits an offence who, with a competitor of that person with respect to a product, conspires, agrees or arranges

    • (a) to fix, maintain, increase or control the price for the supply of the product;

    • (b) to allocate sales, territories, customers or markets for the production or supply of the product; or

    • (c) to fix, maintain, control, prevent, lessen or eliminate the production or supply of the product.

  • Marginal note:Penalty

    (2) Every person who commits an offence under subsection (1) is guilty of an indictable offence and liable on conviction to imprisonment for a term not exceeding 14 years or to a fine not exceeding $25 million, or to both.

  • Marginal note:Evidence of conspiracy, agreement or arrangement

    (3) In a prosecution under subsection (1), the court may infer the existence of a conspiracy, agreement or arrangement from circumstantial evidence, with or without direct evidence of communication between or among the alleged parties to it, but, for greater certainty, the conspiracy, agreement or arrangement must be proved beyond a reasonable doubt.

  • Marginal note:Defence

    (4) No person shall be convicted of an offence under subsection (1) in respect of a conspiracy, agreement or arrangement that would otherwise contravene that subsection if

    • (a) that person establishes, on a balance of probabilities, that

      • (i) it is ancillary to a broader or separate agreement or arrangement that includes the same parties, and

      • (ii) it is directly related to, and reasonably necessary for giving effect to, the objective of that broader or separate agreement or arrangement; and

    • (b) the broader or separate agreement or arrangement, considered alone, does not contravene that subsection.

  • Marginal note:Defence

    (5) No person shall be convicted of an offence under subsection (1) in respect of a conspiracy, agreement or arrangement that relates only to the export of products from Canada, unless the conspiracy, agreement or arrangement

    • (a) has resulted in or is likely to result in a reduction or limitation of the real value of exports of a product;

    • (b) has restricted or is likely to restrict any person from entering into or expanding the business of exporting products from Canada; or

    • (c) is in respect only of the supply of services that facilitate the export of products from Canada.

  • Marginal note:Exception

    (6) Subsection (1) does not apply if the conspiracy, agreement or arrangement

    • (a) is entered into only by parties each of which is, in respect of every one of the others, an affiliate;

    • (b) is between federal financial institutions and is described in subsection 49(1); or

    • (c) is an arrangement, as defined in section 53.7 of the Canada Transportation Act, that has been authorized by the Minister of Transport under subsection 53.73(8) of that Act and for which the authorization has not been revoked, if the conspiracy, agreement or arrangement is directly related to, and reasonably necessary for giving effect to, the objective of the arrangement.

  • Marginal note:Common law principles — regulated conduct

    (7) The rules and principles of the common law that render a requirement or authorization by or under another Act of Parliament or the legislature of a province a defence to a prosecution under subsection 45(1) of this Act, as it read immediately before the coming into force of this section, continue in force and apply in respect of a prosecution under subsection (1).

  • Marginal note:Definitions

    (8) The following definitions apply in this section.

    competitor

    competitor includes a person who it is reasonable to believe would be likely to compete with respect to a product in the absence of a conspiracy, agreement or arrangement to do anything referred to in paragraphs (1)(a) to (c). (concurrent)

    price

    price includes any discount, rebate, allowance, price concession or other advantage in relation to the supply of a product. (prix)

  • R.S., 1985, c. C-34, s. 45
  • R.S., 1985, c. 19 (2nd Supp.), s. 30
  • 1991, c. 45, s. 547, c. 46, s. 590, c. 47, s. 714
  • 2009, c. 2, s. 410
  • 2018, c. 8, s. 110
  • 2018, c. 10, s. 85

Marginal note:Where application made under section 76, 79, 90.1 or 92

 No proceedings may be commenced under subsection 45(1) against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which an order against that person is sought by the Commissioner under section 76, 79, 90.1 or 92.

  • R.S., 1985, c. 19 (2nd Supp.), s. 31
  • 2009, c. 2, s. 410

Marginal note:Foreign directives

  •  (1) Any corporation, wherever incorporated, that carries on business in Canada and that implements, in whole or in part in Canada, a directive, instruction, intimation of policy or other communication to the corporation or any person from a person in a country other than Canada who is in a position to direct or influence the policies of the corporation, which communication is for the purpose of giving effect to a conspiracy, combination, agreement or arrangement entered into outside Canada that, if entered into in Canada, would have been in contravention of section 45, is, whether or not any director or officer of the corporation in Canada has knowledge of the conspiracy, combination, agreement or arrangement, guilty of an indictable offence and liable on conviction to a fine in the discretion of the court.

  • Marginal note:Limitation

    (2) No proceedings may be commenced under this section against a particular company where an application has been made by the Commissioner under section 83 for an order against that company or any other person based on the same or substantially the same facts as would be alleged in proceedings under this section.

  • R.S., 1985, c. C-34, s. 46
  • R.S., 1985, c. 19 (2nd Supp.), s. 32
  • 1999, c. 2, s. 37

Marginal note:Definition of bid-rigging

  •  (1) In this section, bid-rigging means

    • (a) an agreement or arrangement between or among two or more persons whereby one or more of those persons agrees or undertakes not to submit a bid or tender in response to a call or request for bids or tenders, or agrees or undertakes to withdraw a bid or tender submitted in response to such a call or request, or

    • (b) the submission, in response to a call or request for bids or tenders, of bids or tenders that are arrived at by agreement or arrangement between or among two or more bidders or tenderers,

    where the agreement or arrangement is not made known to the person calling for or requesting the bids or tenders at or before the time when any bid or tender is submitted or withdrawn, as the case may be, by any person who is a party to the agreement or arrangement.

  • Marginal note:Bid-rigging

    (2) Every person who is a party to bid-rigging is guilty of an indictable offence and liable on conviction to a fine in the discretion of the court or to imprisonment for a term not exceeding 14 years, or to both.

  • Marginal note:Exception

    (3) This section does not apply to

    • (a) an agreement or arrangement that is entered into or a submission that is arrived at only by parties each of which is, in respect of every one of the others, an affiliate; or

    • (b) an agreement or arrangement that is an arrangement, as defined in section 53.7 of the Canada Transportation Act, or a submission that is arrived at under that arrangement, that has been authorized by the Minister of Transport under subsection 53.73(8) of that Act and for which the authorization has not been revoked, if the agreement, arrangement or submission is directly related to, and reasonably necessary for giving effect to, the objective of the arrangement.

  • R.S., 1985, c. C-34, s. 47
  • R.S., 1985, c. 19 (2nd Supp.), s. 33
  • 2009, c. 2, s. 411
  • 2018, c. 8, s. 111
  • 2018, c. 10, s. 86
  • 2018, c. 10, s. 97

Marginal note:Conspiracy relating to professional sport

  •  (1) Every one who conspires, combines, agrees or arranges with another person

    • (a) to limit unreasonably the opportunities for any other person to participate, as a player or competitor, in professional sport or to impose unreasonable terms or conditions on those persons who so participate, or

    • (b) to limit unreasonably the opportunity for any other person to negotiate with and, if agreement is reached, to play for the team or club of his choice in a professional league

    is guilty of an indictable offence and liable on conviction to a fine in the discretion of the court or to imprisonment for a term not exceeding five years or to both.

  • Marginal note:Matters to be considered

    (2) In determining whether or not an agreement or arrangement contravenes subsection (1), the court before which the contravention is alleged shall have regard to

    • (a) whether the sport in relation to which the contravention is alleged is organized on an international basis and, if so, whether any limitations, terms or conditions alleged should, for that reason, be accepted in Canada; and

    • (b) the desirability of maintaining a reasonable balance among the teams or clubs participating in the same league.

  • Marginal note:Application

    (3) This section applies, and section 45 does not apply, to agreements and arrangements and to provisions of agreements and arrangements between or among teams and clubs engaged in professional sport as members of the same league and between or among directors, officers or employees of those teams and clubs where the agreements, arrangements and provisions relate exclusively to matters described in subsection (1) or to the granting and operation of franchises in the league, and section 45 applies and this section does not apply to all other agreements, arrangements and provisions thereof between or among those teams, clubs and persons.

  • 1974-75-76, c. 76, s. 15
 
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