November 26, 2010
The Competition Bureau has announced that it will update its Fee and Service Standards Handbook to reflect amendments to the Competition Act made in 2009 and 2010.
In making the announcement, the Bureau stated:
“The changes to the Handbook are necessary to reflect amendments to the Act that came into force in 2009 and 2010, including changes to the conspiracy provision, the addition of a provision governing competitor collaborations that substantially prevent or lessen competition, and changes to other provisions of the Act relating to certain pricing practices.
Since 2002, the Bureau has required the payment of fees for binding written opinions provided pursuant to section 124.1 of the Act regarding the applicability of the Act’s provisions to a proposed practice or conduct. Service standards were established in order to provide applicants with timely and predictable periods for written opinions, and to comply with Treasury Board requirements with respect to the imposition of fees.
The revised Handbook will provide updated guidance on how the Commissioner of Competition generally determines whether to exercise her discretion to provide a binding written opinion on the applicability of the provisions requested by an applicant to a proposed practice or conduct, how the Bureau determines the complexity of a proposed practice or conduct, the information required by the Bureau to commence the applicable service standard, and when service standards may be paused or terminated.”
One of the key aspects of the Bureau’s review of its Fee and Service Standards Handbook is guidance on when the Commissioner will issue section 124.1 advisory opinions.
While the Competition Act provides that the Commissioner may issue binding advisory opinions on the application of the Act to business activities, that power is discretionary (i.e., the Commissioner is not required to issue an opinion in any particular case, and in some cases will decline to issue and opinion).
In addition, the time-frames for issuance of advisory opinions, when issued, can be highly inconsistent ranging from a few weeks to many months in some cases.
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