The multi-billion dollar Canadian economy is largely dominated by bigwigs in all major sectors. From telecommunications to pharmaceuticals and fast moving consumer goods (FMCGs), the Canadian market has few key players who dominate their respective industries.
Therefore, competition law for businesses is of utmost importance in a country that’s keen to establish a level-playing field for smaller-sized businesses. While many calls for constant updates in the existing competition laws, it’s largely agreed upon that having these laws in place has still benefited the Canadian consumer market.
If you’re about to set up a business and are unaware of practices that may be termed illegal as per the competition laws in Canada, hire a corporate lawyer to help you through the process.
What is Competition Law?
As defined in the Competition Act statute of 1985, competition law for businesses in Canada establishes the fair practices of doing business in Canada. The law was updated last in 2022, where certain amendments further strengthened the control of the Competition Bureau of Canada, overseeing the law in the country.
Three Provisions of the Competition Act
As per the Competitions Act, there are three provisions of fair practices that businesses must adhere to.
Mergers
The Competition Bureau of Canada oversees all the mergers and acquisitions in the Canadian business segment. Businesses that seek to amalgamate or enter into joint operations must seek the Bureau’s approval before finalizing the deal.
Criminal Matters
Criminal matters refer to conspiracy and bid-rigging activities that businesses may indulge in. This provision is not a matter of civil litigation but is dealt with criminal charges against involved businesses.
Reviewable Practices
Reviewable practices include practices that may seem lawful but have dubious implications. Abuse of dominance, controlling prices, or exclusive supply agreements is a part of reviewable practices that the Competition Bureau may investigate.
How Competition Law Can Benefit Businesses
If you hire a business lawyer in Toronto, they will tell you the following benefits of competition law.
- Create an Even-Playing Field: All sizes of businesses are bound by similar laws in Canada.
- Reduce Market Monopoly: One company’s major share does not translate into market control.
- Allow Small Businesses to Flourish: Over 58,000 small businessesshut down in 2020. Competition Act aims to prevent that from happening.
To Better Understand Competition Law for Businesses, Call Us!
If you’re looking for a lawyer in Toronto to help you set up a business and guide you regarding competition law for businesses, reach out to us. At Nanda and Associate Lawyers, we have competent family law solicitors, immigration lawyers, and corporate lawyers.
You can also book a consultation with us for Canadian immigration matters such as refugee claims, spousal sponsorship, and intracompany visa transfer.
