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ARTICLE · 26 JANUARY 2015

How Efficient Are You? Supreme Court Decision Will Impact Efficiencies Defence In Mergers

The Supreme Court of Canada issued its long-anticipated decision in Tervita Corp. v. Canada (Commissioner of Competition)...

CanadaAntitrust/Competition Law

Earlier today, the Supreme Court of Canada issued its long-anticipated decision in Tervita Corp. v. Canada (Commissioner of Competition), where it allowed the appeal on the basis that the Commissioner of Competition (the "Commissioner") had failed to "quantify quantifiable anti-competitive effects." In its decision, the SCC overturned the findings by the Federal Court of Appeal and the Competition Tribunal.

Background

In 2011, Tervita Corporation ("Tervita"), a waste management services company in Western Canada, acquired Complete Environmental Inc. ("Complete"), which owned land in northeastern British Columbia and a permit allowing it to operate a secure landfill at that site. While the value of the transaction was well below the pre-merger notification thresholds under the Competition Act, it was challenged by the former Commissioner of Competition on the basis that it was likely to result in a substantial prevention of competition in the market for "the

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