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ARTICLE · 05 MAY 2006

Competition Tribunal Limits Right of Third Parties to Set Aside Consent Agreements

Under the Competition Act, the Commissioner of Competition can enter into consent agreements with merging parties to resolve competition issues in mergers and acquisitions. The consent agreement is final when it is registered with the Competition Tribunal. Since amendments to streamline the process in 2002, there has been no process for public comments or approval of draft consent orders by the Tribunal.

CanadaAntitrust/Competition Law

Under the Competition Act, the Commissioner of Competition can enter into consent agreements with merging parties to resolve competition issues in mergers and acquisitions. The consent agreement is final when it is registered with the Competition Tribunal. Since amendments to streamline the process in 2002, there has been no process for public comments or approval of draft consent orders by the Tribunal.

Challenging a Consent Agreement

However, a third party who is "directly affected" has the right to request the variance or rescission of a registered consent agreement. The Tribunal may rescind or vary the agreement if it finds that its terms could not be the subject of an order of the Tribunal. While the Tunney Act in the United States gives interested parties the right to file comments before approval of a consent decree by the court, directly affected third parties in Canada can only attempt to set aside a consent agreement after registration of the agreement.

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