Chapter 11: Competition Policy Flashcards Preview

BUEC 479 > Chapter 11: Competition Policy > Flashcards

Flashcards in Chapter 11: Competition Policy Deck (15)
Loading flashcards...
1

Competition Policy

A plicy concerned with preventing firms from colluding, and seeking to prevent undue reductions in competition due to mergers. The policy also focuses on the conduct of firms and protects consumers from misleading advertising

2

Anti-Combines Policy

First policy created to deal with the dominant cartels in Canada that were lessening competition in many important industries

3

Important Developments in Canadian Competition Policy: 1889

First Canadian Competition Law: An Act for the prevention and suppression of combinations formed in restraint of trade

4

Important Developments in Canadian Competition Policy: 1910

New legislation, the COMBINE INVESTIGATION ACT replaced the earlier 1889 act. Complaint-based procedures were established to initiate investigations; as well as specific references to mergers were placed in the law

5

Important Developments in Canadian Competition Policy: 1919

First PERMANENT INVESTIGATIVE BODY established as an amendment (renamed as the COMPETITION BUREAU)

6

Important Developments in Canadian Competition Policy: 1923

A new version of COMBINES INVESTIGATION ACT was added. It included EXPLICIT MERGER PROVISIONS in order to fight the very limited scope and old act had over mergers. Other various anti-competitive acts were made illegal

7

Important Developments in Canadian Competition Policy: 1960

DECEPTIVE MARKETING PRACTICES were included as anti-competitive practices

8

Important Developments in Canadian Competition Policy: 1976

Initially Canada's competition law was under criminal law. This meant if you broke thse laws you could face jail time and serve harsh sentences. Starting 1976, parts of the competition policy were moved over to CIVIL LAW

9

Important Developments in Canadian Competition Policy: 1986

COMPETITION ACT of 1986 replaced earlier legislation; many changes occurred, most notably the EXPANSION OF CIVIL LAW provision and CREATION OF THE COMPETITION TRIBUNAL (to handle civil law cases). It also increased the importance of ECONOMIC ANALYSIS.

10

Important Developments in Canadian Competition Policy: 1999

Strengthened many areas of Competition Law, and added more civil law provisions

11

Important Developments in Canadian Competition Policy: 2009

Increased penalties, more civil law provisions etc.

12

Objective of Canadian Competition Policy (3)

- Maintain and encourage competition in Canada, thereby achieving several objectives, including:
1.) Promote efficiency and adaptability of the Canadian economy
2.) Ensure that small and medium sized businesses have an equitable opportunity
3.) Provide consumers with competitive prices and product choices

13

Competition Bureau

Carries out most investigations under the direction of the Commissioner of Competition

14

Competition Tribunal

Handles civil matters
- composed of six federal judges that are all very knowledgeable in the appropriate areas.
- A tribunal is also much faster than a regular court case

15

Anti-Competitive Practices (4)

The bureau is focused on four main areas:
1.) Collusion
2.) Anti-Competitive Mergers
3.) Abuse of Market Power
4.) Deceptive Marketing Practices