Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Canadian Commissioner of Competition highlights importance of international collaboration in India speech, (Nov 21, 2013)

By Linda O’Brien, J.D., LL.M.

John Pecman, Canada’s Commissioner of Competition, discussed the importance of competition and compliance and how collaboration among international competition agencies advances competition policy in a November 20 speech before the Indian Institute of Management in Kashipur, India.

Pecman opened his speech at the discussion on “The Game Changing Potential of Competition Regulation and Competition” by discussing the history of competition regulation in Canada. He said that Canada has the honor of being the first country to pass competition legislation. The original legislation enacted in 1889 included criminal provisions making it an offense to unlawfully conspire, combine, agree, or arrange to prevent or lessen competition unduly or enhance prices unreasonably. Canada’s legislation today includes civil and criminal provisions that apply to a wide range of conduct, as well as a variety of remedies.

The Canadian government understands the importance of building a strong competition framework and why healthy competition benefits consumers, businesses, and the economy as a whole, Pecman stated. Canada’s Competition Policy Review Panel prepared a 2006 report that underscored three things that strong competition does: (1) provides workers the opportunity to work for more productive, innovative companies, earn higher wages, and pursue rewarding careers; (2) offers consumers better products, lower prices, more choice, and better services; and (3) spurs innovation and value creation which leads to a higher standard of living for all.

Pecman listed how competition benefits businesses. First, a company earning a reputation for solid competition practices receives a competitive advantage. It helps the business establish itself as a trusted and respected operation. Second, trust and respect helps reduce transaction costs, risk, and uncertainty, and provides recognition to attract high quality employees. Third, there are reputational and financial costs associated with the failure to comply with competition law.

Shared compliance. The Canadian Competition Bureau emphasizes that compliance is a shared responsibility among the Bureau and the legal and business communities, Pecman noted. The Bureau promotes compliance through publications, advocacy, persuasion, and enforcement. The legal community promotes compliance by making their clients aware of their obligations under the competition statute. Businesses promote compliance by helping to ensure that competition laws are respected. Pecman observed that the most effective way for a company to protect its business and brand is to be aware of the respective competition authority’s practices, procedures, and policies, especially given the increasing cooperation between agencies and convergence in competition law and enforcement practices.

International cooperation. Pecman next discussed the important of the Bureau’s strengthening its ability to work with partners beyond Canada’s borders. Canada’s Competition Bureau has strong relationships with more mature competition agencies and growing relationships with agencies in other countries, such as India. Increased cooperation among competition authorities globally means to the business community that there will be increased likelihood that anti-competitive behavior will be prosecuted.

Increasingly, Canada is cooperating with other countries through informal and formal bilateral arrangements. Many of the Bureau’s enforcement guidelines are inspired by international “best” or “recommended” practices. These international relationships have enhanced the Bureau’s own expertise and the effectiveness of enforcement activities both in Canada and abroad.

Pecman addressed the issue of differences in jurisdictions with respect to matters of confidentiality and information disclosure. He noted that countries should explore ways to reduce barriers and believes that a balance can be struck between enabling agencies to collaborate and advance investigations and protecting the confidentiality and privacy rights of the parties.

The Bureau will continue to negotiate cooperation instruments with foreign governments and competition agencies and seek new opportunities to deepen its collaborative relationships with foreign competition enforcers. As nations like India continue their rapid economic growth, the Bureau welcomes the opportunity to strengthen its ties and collaboration in hopes of advancing the respective competition policy and enforcement goals, Pecman concluded.

News: Antitrust