Competition watchdog warns corporations to ‘buckle up’ for new era of enforcement – Financial Post Competition watchdog warns corporations to ‘buckle up’ for new era of enforcement – Financial Post

After several rounds of significant amendments to the Competition Act, the Commissioner of the Canadian Competition Bureau is advising companies to “buckle up” for a new era of enforcement. An increased oversight on mergers, ability to levy higher financial penalties, a focus on deceptive marketing practices and the repeal of the so-called “efficiency defence,” among other changes, are already having an effect: late last month, the Competition Tribunal sided with the Bureau in ordering Cineplex to pay a $38.9-million fine as a result of “drip pricing” in its ticket-buying process.

This summer, the Bureau launched an investigation into Canada’s domestic air travel industry under its new market studies powers.

“Now businesses can be subject to these very extensive, very expensive production orders, so it’s certainly something for a lot of businesses to be aware of,” David Dueck, a partner in Osler’s Competition and Foreign Investment group, tells the Financial Post.

“Many may end up being surprised that they can be subject to investigations like this, even when no one is alleging they’ve done anything wrong.”

An expanded private right of action — where parties can seek monetary awards under the non-criminal provisions of the Act — will also come into force next June. David says this change will very likely lead to more cases being brought against businesses.

“It’s definitely a generational change in the enforcement of competition law and many Canadian businesses probably don’t fully appreciate how dramatic a number of these changes are,” David says.

You can read the full article, “Competition watchdog warns corporations to ‘buckle up’ for new era of enforcement,” on the Financial Post website.