Competition Act

Marginal note:Conspiracy

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

  • (a) to limit unduly the facilities for transporting, producing, manufacturing, supplying, storing or dealing in any product,

  • (b) to prevent, limit or lessen, unduly, the manufacture or production of a product or to enhance unreasonably the price thereof,

  • (c) to prevent or lessen, unduly, competition in the production, manufacture, purchase, barter, sale, storage, rental, transportation or supply of a product, or in the price of insurance on persons or property, or

  • (d) to otherwise restrain or injure competition unduly,

  is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years or to a fine not exceeding ten million dollars or to both.

• Marginal note:Idem

  (2) For greater certainty, in establishing that a conspiracy, combination, agreement or arrangement is in contravention of subsection (1), it shall not be necessary to prove that the conspiracy, combination, agreement or arrangement, if carried into effect, would or would be likely to eliminate, completely or virtually, competition in the market to which it relates or that it was the object of any or all of the parties thereto to eliminate, completely or virtually, competition in that market.

• Marginal note:Evidence of conspiracy

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

• Marginal note:Proof of intent

  (2.2) For greater certainty, in establishing that a conspiracy, combination, agreement or arrangement is in contravention of subsection (1), it is necessary to prove that the parties thereto intended to and did enter into the conspiracy, combination, agreement or arrangement, but it is not necessary to prove that the parties intended that the conspiracy, combination, agreement or arrangement have an effect set out in subsection (1).

• Marginal note:Defence

  (3) Subject to subsection (4), in a prosecution under subsection (1), the court shall not convict the accused if the conspiracy, combination, agreement or arrangement relates only to one or more of the following:

  • (a) the exchange of statistics;

  • (b) the defining of product standards;

  • (c) the exchange of credit information;

  • (d) the definition of terminology used in a trade, industry or profession;

  • (e) cooperation in research and development;

  • (f) the restriction of advertising or promotion, other than a discriminatory restriction directed against a member of the mass media;

  • (g) the sizes or shapes of the containers in which an article is packaged;

  • (h) the adoption of the metric system of weights and measures; or

  • (i) measures to protect the environment.

• Marginal note:Exception

  (4) Subsection (3) does not apply if the conspiracy, combination, agreement or arrangement has lessened or is likely to lessen competition unduly in respect of one of the following:

  • (a) prices,

  • (b) quantity or quality of production,

  • (c) markets or customers, or

  • (d) channels or methods of distribution,

  or if the conspiracy, combination, agreement or arrangement has restricted or is likely to restrict any person from entering into or expanding a business in a trade, industry or profession.

• Marginal note:Defence

  (5) Subject to subsection (6), in a prosecution under subsection (1) the court shall not convict the accused if the conspiracy, combination, agreement or arrangement relates only to the export of products from Canada.

• Marginal note:Exception

  (6) Subsection (5) does not apply if the conspiracy, combination, 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) has prevented or lessened or is likely to prevent or lessen competition unduly in the supply of services facilitating the export of products from Canada.

  • (d) [Repealed, R.S., 1985, c. 19 (2nd Supp.), s. 30]

• Marginal note:Defences

  (7) In a prosecution under subsection (1), the court shall not convict the accused if it finds that the conspiracy, combination, agreement or arrangement relates only to a service and to standards of competence and integrity that are reasonably necessary for the protection of the public

  • (a) in the practice of a trade or profession relating to the service; or

  • (b) in the collection and dissemination of information relating to the service.

• Marginal note:Exception

  (7.1) Subsection (1) does not apply in respect of an agreement or arrangement between federal financial institutions that is described in subsection 49(1).

• Marginal note:Exception

  (8) Subsection (1) does not apply in respect of a conspiracy, combination, agreement or arrangement that is entered into only by companies each of which is, in respect of every one of the others, an affiliate.