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ARTICLE · 23 OCTOBER 2007

Competition Bureau Publishes Independent Report On Dynamic Efficiencies

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On August 9, 2007, the Competition Bureau published an independent report on innovation and dynamic efficiencies intended to help in the development of a framework for considering technological change and dynamic efficiencies in the merger review context. The report, entitled Innovation and Dynamic Efficiencies in Merger Reviews, was prepared by CRA International

CanadaAntitrust/Competition Law
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Article by Brian Facey © 2007, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Competition Law, September, 2007

On August 9, 2007, the Competition Bureau published an independent report on innovation and dynamic efficiencies intended to help in the development of a framework for considering technological change and dynamic efficiencies in the merger review context. The report, entitled Innovation and Dynamic Efficiencies in Merger Reviews, was prepared by CRA International.

Dynamic competition concerns the contest amongst firms to introduce new products, to develop better quality products or reduce production costs through technological advancements over time. The report recognizes that, in general, businesses do not invest enough in innovation and that to make such investments worthwhile, firms must charge more for the resulting products than they would in a traditionally competitive marketplace.

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