Canada's Competition Bureau Offers Guidance On Excessive And Unfair Pricing

As we have discussed in a prior bulletin and a more detailed analysis, Canada's Competition Act was recently amended to both (i) establish a new, more expansive framework for challenging anti-competitive conduct by dominant firms and (ii) specifically provide that it may be an anti-competitive act for a dominant firm to directly or indirectly impose excessive and unfair selling prices.

Our earlier commentary identified certain ambiguities regarding the concept of "excessive and unfair" prices, giving rise to uncertainty about the scope of its application pending judicial consideration and possible guidance from the Competition Bureau.

On November 7, 2024, the Bureau issued preliminary guidance on some of the recent changes to the Competition Act, including the new excessive and unfair pricing provision. This guidance includes responses to several frequently asked questions (FAQs) that provide helpful information on the Bureau's approach to this new provision.