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{{Short description|Canadian federal law governing competition in Canada}}
{{about|the Canadian law|the Indian law|The Competition Act, 2002}}
{{italic title}}
{{Infobox legislation
| short_title = Competition Act
| long_title = An Act to provide for the general regulation of trade and commerce in respect of conspiracies, trade practices and mergers affecting competition
| citation = R.S.C., 1985, c. C-34
| amends =
| enacted_by = [[Parliament of Canada]]
| bill =
| introduced_by =
| 1st_reading =
| 3rd_reading =
| date_assented =
| date_commenced = 19 June 1986
| status = In force
}}

The '''''Competition Act''''' ({{langx|fr|Loi sur la concurrence}}) is a Canadian federal law governing [[competition law|competition]] in Canada. The Act contains both [[Criminal law of Canada|criminal]] and [[Civil law in Canada|civil]] provisions aimed at preventing [[anti-competitive]] practices in the [[economy of Canada|marketplace]].

Along with the ''Competition Tribunal Act'', the Competition Act forms the statutory basis of current federal competition policy in Canada.<ref name=":2">Stanbury, W.T. 2013 December 16. "[https://www.thecanadianencyclopedia.ca/en/article/competition-policy Competition Policy]" (revised). ''The Canadian Encyclopedia''. Historica Canada.</ref>

The Act is enforced and administered by the [[Competition Bureau]], and cases are adjudicated by the [[Competition Tribunal]].

== History ==

=== Background ===
{{See also|Combines Investigation Act}}
The first legislation in Canada dealing with competition was the ''Anti-Combines Act'',<ref name=":0">{{Cite book|title = Competition Law of Canada|url = https://books.google.com/books?id=hqtjVdcc1h8C|publisher = Juris Publishing, Inc.|date = 2013-12-01|isbn = 9781578230969|language = en|first1 = Calvin S.|last1 = Goldman|first2 = J. D.|last2 = Bodrug}}</ref> introduced in May 1889 as the first [[Competition law|antitrust statute]] in the [[Industrial society|industrial world]], preceding the American ''[[Sherman Antitrust Act]]''.<ref name=":02">King, W. L. Mackenzie. 1912. "[https://www.jstor.org/stable/1012311?seq=1 The Canadian Combines Investigation Act]." ''[[The Annals of the American Academy of Political and Social Science]]'' 42:149-155. {{JSTOR|1012311}}.</ref><ref name=":1">Blair, D. Gordon. 1953. "[https://canlii.ca/t/t45v Combines, Controls or Competition]?" ''[[Canadian Bar Review]]'' 31(10)1083–115. Retrieved on 2023-04-09.</ref><ref name=":3">{{Cite web |last=Government of Canada |first=Innovation |date=2020-02-24 |title=Our mandate |url=https://ised-isde.canada.ca/site/competition-bureau-canada/en/how-we-foster-competition/our-organization/our-mandate |access-date=2023-04-10 |website=ised-isde.canada.ca}}</ref> The legislation prohibited conspiracies and [[Illegal agreement|agreements]] by businesses in restraint of trade.<ref name=":0" />

Two years later, anti-combines provisions were mostly incorporated into the [[Criminal Code (Canada)|Canadian Criminal Code]].<ref name=":0" /><ref name=":02" /> In 1912, the [[Supreme Court of Canada]] ruled in ''Weidman v Shragge'' that the purpose of the anti-combines provisions in the Criminal Code was to protect public interest in [[Free market|free competition]].<ref name=":4">Cheffins, Brian. 1989. "[https://digitalcommons.osgoode.yorku.ca/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1784&context=ohlj The Development of Competition Policy, 1890-1940: A Re-Evaluation of a Canadian and American Tradition] (PDF)." ''Osgoode Hall Law Journal'' 27(3):449–90. Also [http://digitalcommons.osgoode.yorku.ca/ohlj/vol27/iss3/1 available here]. Retrieved 2023-04-10.</ref>

Canadian competition and anti-combines laws since 1889 would go through several different iterations, starting with the ''Combines Investigation Act, 1910'', which replaced the 1889 ''Anti-Combines Act'', eventually leading to the ''[[Combines Investigation Act|Combines Investigation Act, 1923 and 1937]]''.<ref name=":1" />

The anti-trust provisions incorporated into the Criminal Code in 1891 would remain until 1960 with an amendment to the ''Combines Investigation Act''.<ref name=":4" />

=== ''Competition Act'' ===
In 1985, the conservative government of [[Brian Mulroney]] replaced the ''Combines Investigation Act, 1923'', with the ''Competition Act'', which came into effect on June 19, 1986.<ref name=":2" /><ref>{{cite book|last1=J. Trebilcock|first1=Michael|title=The Law and Economics of Canadian Competition Policy|date=2003|publisher=University of Toronto Press|isbn=0802086128|page=22}}</ref><ref name=":0" /> The provisions in this Act regarding civil mergers, which deal with both horizontal and vertical mergers, replaced the ineffectual Criminal Code provisions under which only a handful of cases were brought between 1910 and 1976.<ref name=":2" />

In April 1996, a set of amendments to the ''Competition Act'' was introduced into Parliament, but died on the [[Order Paper]]. The bill was changed and reintroduced as Bill C-20 on 20 November 1997, and after being amended, received [[Reading (legislature)|third reading]] in the [[House of Commons]] on 23 September 1998. The proposed amendments dealt with deceptive [[telemarketing]], judicially-authorized interception of private communications for a few criminal offences, new civil provisions for [[False advertising|misleading advertising]], improvements to the merger prenotification process, and clarification of the provisions for regular price claims.<ref name=":2" />

In 2002, several changes were made to the ''Competition Act'' and the ''Competition Tribunal Act''. For instance, private parties were given the right to initiate proceedings before the [[Competition Tribunal]] in certain cases. The Tribunal could also hear references filed pursuant to section 124.2 of the ''Competition Act'' and award costs of proceedings before it.<ref>{{Cite web |title=Competition Tribunal - History |url=https://www.ct-tc.gc.ca/en/tribunal/history.html?wbdisable=true |access-date=2023-04-10 |website=www.ct-tc.gc.ca}}</ref>

Significant amendments to the Act in March 2009 and March 2010 led to several criminal offences being repealed and/or converted into reviewable practices. As a result, only two criminal-offence provisions exist in the Competition Act: conspiracy and [[Bid rigging|bid-rigging]], which are [[Illegal per se|illegal ''per se'']].<ref name=":5">{{cite web | url=https://gowlingwlg.com/en/insights-resources/guides/2022/doing-business-in-canada-competition-law/ | title=Guide to Doing Business in Canada: Competition & antitrust law }}</ref>

The Act was again amended on June 23, 2022, as part of Canada's ''Budget Implementation Act, 2022'' (Bill C-19).<ref>{{Cite web |last=Canada |first=Competition Bureau |date=2022-06-24 |title=Important amendments to the Competition Act come into effect |url=https://www.canada.ca/en/competition-bureau/news/2022/06/important-amendments-to-the-competition-act-come-into-effect.html |access-date=2023-04-10 |website=www.canada.ca}}</ref> On November 17, 2022, with the intention to modernize the Act, [[François-Philippe Champagne]], [[Minister of Innovation, Science and Industry]], commenced a review of the ''Competition Act''.<ref>{{Cite web |title=Canadian Government Announces Review of the Competition Act {{!}} Blakes |url=https://blakes.com/insights/bulletins/2022/canadian-government-announces-review-of-the-compet |access-date=2023-04-10 |website=blakes.com |language=en}}</ref> The [[Affordable Housing and Groceries Act, Bill C-56|''Affordable Housing and Groceries Act'']] (Bill C-56), tabled on 21 September 2023, proposes three ''Competition Act'' changes including removal of the "efficiencies defence" in merger cases.<ref name=Lord>{{cite news | first=Craig | last=Lord | title=Can Ottawa make a dent in housing grocery prices? What a new bill would do | url= https://globalnews.ca/news/9976367/liberals-affordable-housing-grocreies-act-competition/ | date=21 September 2023 | publisher=Globalnews.ca }}</ref> <ref>{{cite news | title=Opinion: Keep the efficiencies defence in merger cases. It's good for growth | date=28 September 2023 | url= https://financialpost.com/opinion/keep-efficiencies-defence-merger-cases-good-growth | first=Jeffrey | last=Church | publisher=National Post }}</ref>

== Application and administration ==
The ''Competition Act'' contains both [[Criminal law of Canada|criminal]] and [[Civil law in Canada|civil]] provisions aimed at preventing [[anti-competitive]] practices in the [[economy of Canada|marketplace]]. The Act applies to all economic activities (both [[goods and services]]) except those specifically exempted—e.g., [[collective bargaining]], [[amateur sports]], [[securities underwriting]], or activities subject to other legislation (such as industries where price or output, or both, are regulated by federal or provincial governments).<ref name=":2" />

The ''Competition Act'' defines a "[[Mergers and acquisitions|merger]]" as the acquisition or establishment—whether by purchase or lease of shares or assets, or by amalgamation, combination or otherwise—of control over or a significant interest in all or part of a business.<ref name=":5" />

Since 2010, only two criminal-offence provisions exist in the ''Competition Act'': conspiracy and bid-rigging, which are [[Illegal per se|illegal ''per se'']] (i.e., the effect that such conduct has on competition is irrelevant).<ref name=":5" />

The administration and enforcement of the ''Competition Act'' is done by the [[Competition Bureau]],<ref>{{Cite web|title = Our Organization - Competition Bureau|url = http://competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/h_00125.html|website = competitionbureau.gc.ca|access-date = 2016-01-07|first = Government of Canada, Innovation, Science and Economic Development Canada, Office of the Deputy Minister, Competition Bureau|last = Canada}}</ref> headed by the Commissioner of Competition. The Bureau is also responsible for the administration and enforcement of the ''[[Consumer Packaging and Labeling Act|Consumer Packaging and Labelling Act]]'' (for non-food products), the ''[[Textile Labelling Act]]'', and the ''[[Precious Metals Marking Act]]''.

The [[Competition Tribunal]] is a specialized administrative body that has exclusive jurisdiction to hear certain competition matters.<ref>{{Cite book|title = Competition Laws Outside the United States|url = https://books.google.com/books?id=gxRF3AJtDCsC|publisher = American Bar Association|date = 2001-01-01|isbn = 9781570738814|language = en|first = H. Stephen|last = Harris}}</ref>

== Cases ==
During the 1980 and 1990s, fines in conspiracy cases (sections 45–47) increased greatly.<ref name=":2" />

A record fine was obtained on 27 May 1998 when US-based [[Archer Daniels Midland]] (ADM) pleaded guilty and paid $14 million in fines for a conspiracy involving [[lysine]] and $2 million for one involving [[citric acid]]. The fines amounted to 29.2% and 11.8% respectively of ADM's sales in Canada during the conspiracy.<ref name=":2" />

==See also==
*[[Competition Bureau]]
*[[Competition Tribunal]]
*[[Combines Investigation Act]]
*[[Competition Act 1998]] - UK

==References==
{{Reflist}}

==External links==
* {{cite web | url = http://www.laws.justice.gc.ca/eng/acts/C-34/index.html | title = Competition Act (R.S.C., 1985, c. C-34) | publisher = Department of Justice }}

== Further reading ==

* Bliss, Michael. 1973. "Another Anti-Trust Tradition: Canadian Anti-Combines Policy, 1889-1910." ''Bus. Hist. Rev.'' (47)177:186-–88;
* Davies, Ward, and Beck. 1997. ''Competition Law of Canada'', vol. 1.
* "Canadian Competition Law After Ten Years of the Competition Act." ''Review of Industrial Organization'' 13(1-2). April 1998.

[[Category:Canadian competition law]]
[[Category:Canadian federal legislation]]
[[Category:1986 in Canadian law]]
[[Category:Consumer protection in Canada]]
[[Category:Consumer protection law]]

Competition Act - Revision history

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