Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Commissioner John Pecman outlines realignment, recent enforcement efforts at Canada Competition Bureau, (May 22, 2014)

By Greg Hammond, J.D.

John Pecman, the Commissioner of Canada’s Competition Bureau, provided the keynote address at the Canadian Bar Association’s Competition Law Spring Forum on May 21. His speech, entitled “The Competition Bureau: Past, Present and Future,” discussed the Bureau’s compliance promotion efforts, realignment, Commissioner Pecman’s vision for the Bureau, the 2014-2015 Annual Plan, and the Bureau’s year in review.

Compliance. The first major point Pecman discussed was the importance of compliance. “Promoting compliance with the Competition Act (the “Act”) and the other legislation we enforce has been, and will continue to be, a priority for the Bureau,” he stated. The Bureau launched its first annual anti-cartel day in March, designed to increase awareness among businesses regarding the avoidance of price fixing, bid rigging, and other cartel activity. The Bureau also provided new publications and documents for the public with regard to compliance, as well as a corporate compliance video.

Bureau realignment. According to the Commissioner, the Bureau has already begun the process of realignment and restructuring in order to better leverage its current resources and improve collaboration. The most visible change, he remarked, will be the restructuring of the Bureau’s eight branches into four branches. Specifically: (1) the Fair Business Practices Branch and Criminal Matters Branch will be combined; (2) the Mergers Branch and Civil Matters Branch will be combined; (3) the Economic Policy and Enforcement Branch, Legislative and International Affairs Branch, and Public Affairs Branch will be combined; and (4) the Compliance and Operations Branch will remain an independent branch.

“Realignment will not decrease the size of the Bureau or impact the nature of the work it does,” the Commissioner reassured. “Rather, realignment is about building a stronger, more flexible and more adaptive agency. It is focused on ensuring that the Bureau is responding to current realities and prepared for continued success in the future.”

Vision. Pecman’s vision for the Bureau is to “create a culture of greater openness.” This, according to him, will involve increased dialogue with individuals and entities that are under investigation; additional transparency in the Bureau’s activities, while maintaining discretion to protect enforcement interests; increasing competition advocacy; and creating better developed, diversified, and coordinated relationships with the Bureau’s stakeholders and partners. He also noted that other tools can be utilized to promote compliance, depending on each situation, including “advocacy, outreach, suasion and publications.” The Bureau is currently in the process of updating its “Conformity Continuum,” which discusses the Bureau’s approach to administering and enforcing the Competition Act, among others.

Annual plan. The Bureau’s 2014-2015 Annual Plan, titled “Promoting Compliance for the Benefit of Canadian Consumers,” establishes four priorities the Bureau will pursue: (1) “apply effective and integrated enforcement and administration of the Competition Act and labelling statutes;” (2) “increase competition promotion efforts to advance a culture of compliance and competition advocacy;” (3) “align with and deliver on Government of Canada priorities;” and (4) “increase organizational synergies through our people, planning and systems.” The Bureau’s priorities were designed to ensure Canadians will “benefit from a competitive and innovative marketplace,” the Commissioner noted.

Year in review. According to Pecman, the Bureau’s Mergers Branch completed 173 merger reviews, 46 “complex” merger reviews, and was successful in decreasing its average review times and meeting a 90 percent service standard. In addition, the Mergers Branch issued 14 position statements, which disclose the Branch’s findings and guidance on the Bureau’s approach to merger review. The Branch will continue to issue position statements, particularly in cases where “issues are sufficiently important or complex; clarification of a point of law or policy is needed; the matter in question has generated substantial public interest; or the review involved new analytical tools, findings or outcomes,” Pecman said.

The Criminal Matters and Civil Matters Branches also had a successful year, the Commissioner noted. Specifically, the Criminal Matters Branch imposed a record of over $54 million in fines under criminal cartel provisions, including $39.7 million in an auto parts case, $9.5 million in a bearings case, $4 million in a chocolate confectionary price fixing case, $2.5 million in an air cargo case, and $1.7 million in an ocean freight shipping case. The Civil Matters Branch has also increased its publication of position statements to improve transparency of its reviews.

The Fair Business Practices Branch worked with the Vancouver Police Department, the Better Business Bureau, and the Fraud Prevention Forum to kick off Fraud Prevention Month by announcing the year’s “top ten scams.” The Branch also co-hosted a workshop to explore emerging issues in e-commerce and online advertising.

Over the course of the last year, the Bureau has increased its use of advocacy and economic policy enforcement. “It is our belief that we have a well-defined role to play in advocating for competitive markets, both through regulatory interventions and enhanced collaboration and communication with stakeholders,” said the Commissioner. The Bureau issued a number of guidance documents to stakeholders, as well as an update to the Intellectual Property Enforcement Guidelines.

News: Antitrust