January 29, 2019
Practical Law Canada has published a New Legal Update, which discusses recent Competition Bureau advocacy efforts in British Columbia’s liquor sector. In addition to the ability to commence informal and formal investigations and bring proceedings before the Competition Tribunal and courts, the Bureau may also (and increasingly does) engage in advocacy to encourage more competition in key sectors. Such efforts by the Bureau supplement its other enforcement powers where, for example, it does not have the ability to rely on its enforcement tools under the Competition Act (e.g., in provincially or federally regulated markets). In addition to being another avenue for the Bureau to encourage competitive Canadian markets, its advocacy powers also offer market participants an additional potential avenue of remedies to address anti-competitive activities.
Below is an excerpt with a link to the full Update.
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On January 17, 2019, the Interim Commissioner of Competition (Commissioner), head of the Competition Bureau (Bureau), published an open letterto British Columbia’s Attorney General, encouraging British Columbia to take measures to increase competition in the province’s liquor sector.
Background –Competition Act Advocacy Mandate
This recent letter to the British Columbia government reflects a growing willingness by the Bureau to pursue a broad range of measures to further its advocacy role under the Competition Act, R.S.C. 1985, c. C-34 (Competition Act).
The Competition Act establishes an extensive mandate for the Bureau to protect and promote competition in Canada. Section 1.1 sets out the fundamental purpose of the Competition Act, which is to encourage competition and efficiency in the Canadian economy. This is supplemented by more detailed provisions that contemplate wide latitude in how the Commissioner may choose to carry out this mandate, ranging from case-specific enforcement measures to broader advocacy initiatives. See Practice Note, Canadian Competition Law: Overview.
Sections 125 and 126 of the Competition Act provide for the Bureau’s advocacy role in making representations before federal and provincial boards, commissions, tribunals or other persons carrying out regulatory functions. This prerogative allows the Bureau a platform to advocate for pro-competitive policy and regulatory changes. The Bureau has also interpreted these provisions as supporting its authority to carry out market studies to develop policy positions (See Market Studies Information Bulletin (Bulletin)).
For the full update, see: Competition Bureau Advocates for More Competition in British Columbia’s Liquor Sector)
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