Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Canada's antitrust enforcement efforts touted at Northwestern Law School conference, (Jun 13, 2014)

By Jeffrey May, J.D.

Lisa Campbell, the Canada Competition Bureau's Senior Deputy Commissioner for Mergers, outlined the agency's recent enforcement efforts at Northwestern University School of Law's Fifth Annual Chicago Forum on International Antitrust Issues. In remarks delivered yesterday, Campbell discussed activity in four areas: cartel enforcement, merger review, abuse of dominance, and agreements between competitors.

Describing the Competition Bureau's cartel enforcement efforts as “impressive,” Campbell noted that, since April 2013, fines in this area have totaled over (CAD) $56 million. Among those fines was the largest fine ever ordered by a Canada court for a bid rigging offense—a (CAD) $30 million fine against Japanese motor vehicle components supplier Yazaki Corporation. Also noted was the recent launch of a “Criminal Cartel Whistleblowing Initiative,” which is a way to encourage notification to the Competition Bureau of possible cartel violations.

Mergers. The Canada Competition Bureau's Mergers Branch has been “extremely busy of late,” according to Campbell. May saw a record for the numbers of premerger notification filings received by the Mergers Branch.

Campbell noted a merger case currently before Canada's Supreme Court, challenging the acquisition by CCS Corporation (now Tervita Corporation) of Complete Environmental Inc. and its proposed Babkirk hazardous waste landfill site. The $6 million, consummated acquisition was not reportable under the premerger notification thresholds. However, even non-reportable transactions can be challenged within one year of closing, Campbell explained. The agency alleges that the transaction will restrain competition in the market for the disposal of solid hazardous waste within northeastern British Columbia. Also on the merger front, the Competition Bureau, in collaboration with the U.S. agencies, issued best practices document concerning cooperation in cross-border merger investigations.

Abuse of dominance. In the abuse of dominance area, the Competition Bureau is pursuing a case against the Toronto Real Estate Board over restrictions on Web-based real estate services, according to Campbell. In February, Canada’s Federal Court of Appeal overturned a Competition Tribunal decision in favor of the board, thereby allowing the case to proceed.

Agreements between competitors. The Competition Bureau's setlement with four major publishers over alleged anticompetitive agreements in the e-book market was highlighted as a recent success. Campbell said that the consent agreement with Hachette Book Group, HarperCollins, Macmillan and Simon & Schuster will increase competition among retailers, resulting in lower prices for e-books for Canadian consumers. Under the settlement, the four publishers must remove or amend clauses in their distribution agreements with individual e-book retailers that purportedly restricted retail price competition.

In closing, Campbell noted the recently-announced restructuring of the Competition Bureau’s eight branches into four branches. She predicted that the realignment of operations will enable the Competition Bureau to become a more streamlined and effective agency.

News: Antitrust