Competition Bureau
Labatt Pleads Guilty and Pays $250,000 Fine following a Competition Bureau InvestigationOTTAWA, November 23, 2005 - An inquiry launched in October 2004 by the Competition Bureau into the Quebec beer industry has led to the conviction of the Labatt Brewing Company by the Court of Quebec. Today in Montreal, following an agreement with the Attorney General of Canada, Labatt pleaded guilty to a charge of price maintenance on discount beer sold by nine independent convenience/grocery retailers in Sherbrooke and elsewhere in Québec. Such behavior is prohibited under the Competition Act. The Court fined Labatt $250,000 - equal to the largest fine in a previous price maintenance case - and issued a prohibition order against the company. Between March 2004 and April 2005, Labatt, through some of its sales representatives, attempted either by agreement, threat, promise or similar means, to influence upward, or discourage the reduction of, the price at which nine independent convenience/grocery retailers supplied or offered to supply their discount beer from other breweries and Labatt. This type of activity is specifically prohibited under section 61(1)(a) of the Competition Act. Labatt’s attempts, when successful, affected the price of discount beer sold by these nine retailers, including brands from its competitors. “Labatt’s actions, through some of its sales representatives, resulted in some discount beer consumers in Sherbrooke and elsewhere in the province being offered discount beer at a higher price, while Labatt’s competitors were unable to provide independent retailers and consumers with better prices,” said Senior Deputy Commissioner Denyse MacKenzie. “In order to safeguard the competitive process and ensure that consumers benefit from the lowest possible prices for goods and services, the Competition Bureau will continue to fully enforce the price maintenance provision of the Competition Act.” Under the prohibition order, Labatt will have to inform all of its Quebec independent convenience/grocery retailers in writing that under section 61 of the Act, the company or its representatives cannot by agreement, threat, promise or similar means, attempt to influence upward, or discourage the reduction of the price of alcoholic beverages. The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. Court Documents : Prohibition Order (PDF: 108KB) Agreed Statement of Facts (PDF: 122KB) For media enquiries, please contact: For general enquiries, please contact: 
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Created: 2005-11-23 Updated: 2005-11-24 |
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