Introduction
Canada's Competition Act applies to all businesses
and business activities in Canada. All companies doing business in
Canada need to be aware of the Act, as penalties for breach of its
provisions can be quite severe. For example, the maximum penalty
for price fixing is a fine of up to $25 million and 14 years in
jail.
The Competition Act applies to three main areas of
business conduct that can harm competition: coordinated conduct
among competitors, abuse of dominance, and mergers. The Act also
includes misleading advertising provisions.
Conspiracies and other coordinated conduct among
competitors
Hard-core cartels involving price fixing, market allocation, and
output restriction agreements between competitors are per
se criminal offences in Canada, as is bid rigging. Other
agreements between competitors that lessen or prevent competition
substantially can be annulled by a special court, the Competition
Tribunal.
