Competition Tribunal Rescinds Ebooks Consent Agreement, Clarifies Substantive Requirements

KEY TAKEAWAYS:

• The Competition Tribunal (Tribunal) requires that consent agreements disclose the basis of the conduct being remedied and the remedy's rationale.
• The Tribunal confirms a previous holding that mere allegations of unlawful conduct are insufficient. The Commissioner must conclude that conduct contravenes the Competition Act.
• The decision will mean greater transparency from the settlement process.

On June 10, 2016, the Tribunal released a decision in Rakuten Kobo Inc. v. The Commissioner of Competition (Kobo), revoking a 2014 consent agreement between the Commissioner of Competition (Commissioner) and four ebook publishers (Respondent Publishers).

Following the 2014 consent agreement between the Commissioner and the Respondent Publishers, Rakuten Kobo Inc., a third-party retailer of e-books, applied to the Tribunal to change or rescind the agreement on grounds that it was based on terms that cannot be the subject of an order of the Tribunal.