Under the Competition Act, mergers of all sizes and in all sectors of the economy are subject to review by the Commissioner of Competition and his or her staff to determine whether they will likely result in a substantial lessening or prevention of competition.
In general, mergers are viewed positively as a means to increase competitiveness, allowing Canadians to benefit from lower prices, product choice and quality services. However, the Bureau pays close attention to the small portion of mergers that could substantially prevent or lessen competition in particular markets. In reviewing mergers, the Bureau considers many different elements including the level of economic concentration in the relevant industry and the merging parties' market shares.
If the Commissioner of Competition determines that the merger is likely to affect competition, he or she may apply to the Competition Tribunal for an order to prevent, dissolve or alter the merger.
In addition, the Commissioner of Competition must be notified of all mergers that exceed certain size thresholds. Failure to notify is a criminal offence.
More information regarding the merger provisions of the Competition Act is contained in the Merger Enforcement Guidelines. The Bureau has information and a number of documents, including forms and a procedures guide for merger notification, available on the Bureau's Web site.
DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.
New Brunswick Contact(s):
See National Contact.