Canadian Competition Act

The Competition Act is the Canadian federal law that governs competition and business conduct in Canada. It aims to prevent anti-competitive market practices and ensure consumers enjoy competitive products and prices.

The Canadian Competition Act like U.S. antitrust laws seeks to prevent companies participating in anti-competitive business practices, like price-fixing, bid-rigging, exclusive dealing, tied selling, market restriction or refusal to deal and abuse of dominance (forming monopolies). It permits the government to review mergers to assess their anti-competitive effects, regardless of size.

The Competition Act also seeks to promote competition and create equitable opportunities for small and medium-sized enterprises, and protects consumers by prohibiting deceptive marketing and advertising.

Private citizens have been able to sue to enforce the act since 2002 — except for cases of abuse of dominance. The Canadian Competition Act is administered by the Competition Bureau, an independent law enforcement agency, and cases are adjudicated by the Competition Tribunal.