March 6, 2014
Readers of my blog will know that I like competition, a lot (and that I like regulation, well, a lot less). While I make my livelihood from regulation (I am a lawyer after all), my view is that most markets are better off driven by the market not regulators – that’s just my view, and obviously there’s a lot of debate over where the regulatory line should be (and different considerations in different industries).
In the spirit of more competition, I’ve been watching (like a lot of Canadians) the newest debate over deregulation of liquor retailing in Ontario (see my earlier post: here). Well, less deregulation and more raised questions as to why there are so few players.
My view on more liquor retail competition in Ontario? Let Ontario corner stores compete in liquor retailing in Ontario (with safeguards) and open the market to let craft brewers and other small producers better compete. My view that there is “enough competition” in Ontario liquor retailing? Or that retailers can’t comply with rules to protect minors? Scepticism, to say the least. To me, markets should decide in the majority of cases, with minimal safeguards to protect other valid considerations (like minor safety related to the consumption of alcohol).
One of the newest developments in this, to me (and apparently a lot of others), very fascinating and important debate was an announcement earlier today that two Ontario residents will be producing a new documentary on competition and Ontario liquor laws. In this regard, several interesting summaries of their project have been posted (see e.g.: here). They have also produced a short initial video summarizing some of the key issues at play – it’s well worth a watch – see: here.
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