New Developments In Canadian Competition Law And Foreign Investment

BUREAU'S NEW PRICE MAINTENANCE ENFORCEMENT GUIDELINES

On September 15, 2014, the Competition Bureau (Bureau) published its Price Maintenance Enforcement Guidelines (Guidelines). These Guidelines describe the Bureau's approach to enforcing section 76 of the Competition Act (Act), a civil provision focused on conduct that influences the price at which a downstream supplier sells its products and which has an adverse effect on competition. The Guidelines are non-binding on the Bureau but nevertheless provide important clarity for companies operating in Canada as to how the Bureau will apply the Act to a number of common distribution practices.

The Guidelines suggest a conservative approach to section 76 but have regard to a number of important economic concepts. For example, the Guidelines recognize that the existence of "market power" is a "key factor" in determining whether conduct is capable of having an adverse effect on competition. By further example, the