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

Full Document:  

Act current to 2022-06-20 and last amended on 2020-07-01. Previous Versions

PART VIIIMatters Reviewable by Tribunal (continued)

Specialization Agreements (continued)

Marginal note:Registration of modifications

  •  (1) On application by the parties to a specialization agreement that has been registered, and after affording the Commissioner a reasonable opportunity to be heard, the Tribunal may make an order directing that a modification of the agreement be registered.

  • Marginal note:Order to remove from register

    (2) Where, on application by the Commissioner, the Tribunal finds that the agreement or a modification thereof that has been registered

    • (a) has ceased to meet the conditions prescribed by paragraph 86(1)(a) or (b), or

    • (b) is not being implemented,

    the Tribunal may make an order directing that the agreement or modification thereof, and any order relating thereto, be removed from the register.

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

Marginal note:Right of intervention

 The attorney general of a province may intervene in any proceedings before the Tribunal under section 86 or 87 for the purpose of making representations on behalf of the province.

  • R.S., 1985, c. 19 (2nd Supp.), s. 45

Marginal note:Register of specialization agreements

  •  (1) The Tribunal shall cause to be maintained a register of specialization agreements, and any modifications of those agreements, that the Tribunal has directed be registered, and any such agreements and modifications shall be included in the register for the periods specified in the orders.

  • Marginal note:Public register

    (2) The register shall be accessible to the public.

  • R.S., 1985, c. 19 (2nd Supp.), s. 45
  • 2014, c. 20, s. 389

Marginal note:Non-application of sections 45, 77 and 90.1

 Section 45, section 77 as it applies to exclusive dealing, and section 90.1 do not apply in respect of a specialization agreement, or any modification of such an agreement, that is registered.

  • R.S., 1985, c. 19 (2nd Supp.), s. 45
  • 2009, c. 2, s. 429

Agreements or Arrangements that Prevent or Lessen Competition Substantially

Marginal note:Order

  •  (1) If, on application by the Commissioner, the Tribunal finds that an agreement or arrangement — whether existing or proposed — between persons two or more of whom are competitors prevents or lessens, or is likely to prevent or lessen, competition substantially in a market, the Tribunal may make an order

    • (a) prohibiting any person — whether or not a party to the agreement or arrangement — from doing anything under the agreement or arrangement; or

    • (b) requiring any person — whether or not a party to the agreement or arrangement — with the consent of that person and the Commissioner, to take any other action.

  • Marginal note:Factors to be considered

    (2) In deciding whether to make the finding referred to in subsection (1), the Tribunal may have regard to the following factors:

    • (a) the extent to which foreign products or foreign competitors provide or are likely to provide effective competition to the businesses of the parties to the agreement or arrangement;

    • (b) the extent to which acceptable substitutes for products supplied by the parties to the agreement or arrangement are or are likely to be available;

    • (c) any barriers to entry into the market, including

      • (i) tariff and non-tariff barriers to international trade,

      • (ii) interprovincial barriers to trade, and

      • (iii) regulatory control over entry;

    • (d) any effect of the agreement or arrangement on the barriers referred to in paragraph (c);

    • (e) the extent to which effective competition remains or would remain in the market;

    • (f) any removal of a vigorous and effective competitor that resulted from the agreement or arrangement, or any likelihood that the agreement or arrangement will or would result in the removal of such a competitor;

    • (g) the nature and extent of change and innovation in any relevant market; and

    • (h) any other factor that is relevant to competition in the market that is or would be affected by the agreement or arrangement.

  • Marginal note:Evidence

    (3) For the purpose of subsections (1) and (2), the Tribunal shall not make the finding solely on the basis of evidence of concentration or market share.

  • Marginal note:Exception where gains in efficiency

    (4) The Tribunal shall not make an order under subsection (1) if it finds that the agreement or arrangement has brought about or 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 or arrangement, and that the gains in efficiency would not have been attained if the order had been made or would not likely be attained if the order were made.

  • Marginal note:Restriction

    (5) For the purposes of subsection (4), the Tribunal shall not find that the agreement or arrangement has brought about or is likely to bring about gains in efficiency by reason only of a redistribution of income between two or more persons.

  • Marginal note:Factors to be considered

    (6) In deciding whether the agreement or arrangement is likely to bring about the gains in efficiency described in subsection (4), the Tribunal shall consider whether such gains will result in

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

    • (b) a significant substitution of domestic products for imported products.

  • Marginal note:Exception

    (7) Subsection (1) does not apply if the agreement or arrangement is entered into, or would be entered into, only by parties each of which is, in respect of every one of the others, an affiliate.

  • Marginal note:Exception

    (8) Subsection (1) does not apply if the agreement or arrangement relates only to the export of products from Canada, unless the 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 substantially in the supply of services that facilitate the export of products from Canada.

  • Marginal note:Exception

    (9) The Tribunal shall not make an order under subsection (1) in respect of

    • (a) an agreement or arrangement between federal financial institutions, as defined in subsection 49(3), in respect of which the Minister of Finance has certified to the Commissioner

      • (i) the names of the parties to the agreement or arrangement, and

      • (ii) the Minister of Finance’s request for or approval of the agreement or arrangement for the purposes of financial policy;

    • (b) an agreement or arrangement that constitutes a merger or proposed merger under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act in respect of which the Minister of Finance has certified to the Commissioner

      • (i) the names of the parties to the agreement or arrangement, and

      • (ii) the Minister of Finance’s opinion that the merger is in the public interest, or that it would be in the public interest, taking into account any terms and conditions that may be imposed under those Acts;

    • (c) an agreement or arrangement that constitutes a merger or proposed merger approved under subsection 53.2(7) of the Canada Transportation Act in respect of which the Minister of Transport has certified to the Commissioner the names of the parties to the agreement or arrangement; or

    • (d) an agreement or arrangement that constitutes an existing or proposed 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.

  • Marginal note:Where proceedings commenced under section 45, 49, 76, 79 or 92

    (10) No application may be made under this section against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which

    • (a) proceedings have been commenced against that person under section 45 or 49; or

    • (b) an order against that person is sought by the Commissioner under section 76, 79 or 92.

  • Marginal note:Definition of competitor

    (11) In subsection (1), competitor includes a person who it is reasonable to believe would be likely to compete with respect to a product in the absence of the agreement or arrangement.

Mergers

Marginal note:Definition of merger

 In sections 92 to 100, merger means the acquisition or establishment, direct or indirect, by one or more persons, whether by purchase or lease of shares or assets, by amalgamation or by combination or otherwise, of control over or significant interest in the whole or a part of a business of a competitor, supplier, customer or other person.

  • R.S., 1985, c. 19 (2nd Supp.), s. 45

Marginal note:Order

  •  (1) Where, on application by the Commissioner, the Tribunal finds that a merger or proposed merger prevents or lessens, or is likely to prevent or lessen, competition substantially

    • (a) in a trade, industry or profession,

    • (b) among the sources from which a trade, industry or profession obtains a product,

    • (c) among the outlets through which a trade, industry or profession disposes of a product, or

    • (d) otherwise than as described in paragraphs (a) to (c),

    the Tribunal may, subject to sections 94 to 96,

    • (e) in the case of a completed merger, order any party to the merger or any other person

      • (i) to dissolve the merger in such manner as the Tribunal directs,

      • (ii) to dispose of assets or shares designated by the Tribunal in such manner as the Tribunal directs, or

      • (iii) in addition to or in lieu of the action referred to in subparagraph (i) or (ii), with the consent of the person against whom the order is directed and the Commissioner, to take any other action, or

    • (f) in the case of a proposed merger, make an order directed against any party to the proposed merger or any other person

      • (i) ordering the person against whom the order is directed not to proceed with the merger,

      • (ii) ordering the person against whom the order is directed not to proceed with a part of the merger, or

      • (iii) in addition to or in lieu of the order referred to in subparagraph (ii), either or both

        • (A) prohibiting the person against whom the order is directed, should the merger or part thereof be completed, from doing any act or thing the prohibition of which the Tribunal determines to be necessary to ensure that the merger or part thereof does not prevent or lessen competition substantially, or

        • (B) with the consent of the person against whom the order is directed and the Commissioner, ordering the person to take any other action.

  • Marginal note:Evidence

    (2) For the purpose of this section, the Tribunal shall not find that a merger or proposed merger prevents or lessens, or is likely to prevent or lessen, competition substantially solely on the basis of evidence of concentration or market share.

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

Marginal note:Factors to be considered regarding prevention or lessening of competition

 In determining, for the purpose of section 92, whether or not a merger or proposed merger prevents or lessens, or is likely to prevent or lessen, competition substantially, the Tribunal may have regard to the following factors:

  • (a) the extent to which foreign products or foreign competitors provide or are likely to provide effective competition to the businesses of the parties to the merger or proposed merger;

  • (b) whether the business, or a part of the business, of a party to the merger or proposed merger has failed or is likely to fail;

  • (c) the extent to which acceptable substitutes for products supplied by the parties to the merger or proposed merger are or are likely to be available;

  • (d) any barriers to entry into a market, including

    • (i) tariff and non-tariff barriers to international trade,

    • (ii) interprovincial barriers to trade, and

    • (iii) regulatory control over entry,

    and any effect of the merger or proposed merger on such barriers;

  • (e) the extent to which effective competition remains or would remain in a market that is or would be affected by the merger or proposed merger;

  • (f) any likelihood that the merger or proposed merger will or would result in the removal of a vigorous and effective competitor;

  • (g) the nature and extent of change and innovation in a relevant market; and

  • (h) any other factor that is relevant to competition in a market that is or would be affected by the merger or proposed merger.

  • R.S., 1985, c. 19 (2nd Supp.), s. 45

Marginal note:Exception

 The Tribunal shall not make an order under section 92 in respect of

  • (a) a merger substantially completed before the coming into force of this section;

  • (b) a merger or proposed merger under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act in respect of which the Minister of Finance has certified to the Commissioner the names of the parties and that the merger is in the public interest — or that it would be in the public interest, taking into account any terms and conditions that may be imposed under those Acts;

  • (c) a merger or proposed merger approved under subsection 53.2(7) of the Canada Transportation Act and in respect of which the Minister of Transport has certified to the Commissioner the names of the parties; or

  • (d) a merger or proposed merger that constitutes an existing or proposed 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.

  • R.S., 1985, c. 19 (2nd Supp.), s. 45
  • 1991, c. 45, s. 549, c. 46, ss. 592, 593, c. 47, s. 716
  • 1999, c. 2, s. 37
  • 2000, c. 15, s. 14
  • 2001, c. 9, s. 579
  • 2007, c. 19, s. 62
  • 2018, c. 10, s. 88
 
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