Mastercard And VISA Vindicated By Competition Tribunal Price Maintenance Decision*

In early 2009 Canada's Competition Act was significantly amended. One of the amendments removed the price maintenance provisions from the criminal provisions of the Act to re-enact them – in largely the same form – as a reviewable conduct provision. As a result, agreements between suppliers and distributors as to minimum prices to be charged by the distributor, as well as refusals by suppliers to provide product to discounting distributors, ceased to be criminal offenses. Rather, the same conduct became subject to civil challenge before the Competition Tribunal. If the applicant can demonstrate that the conduct is having an adverse effect on competition the Tribunal may make an order that the conduct cease.