Pre-merger notification transaction size threshold to maintain $93 million and from Canada competition law to be reviewed
OTTAWA (ON), February 7, 2022 /CNW Telbec/ – Competition in the economy is a driver of innovation, efficiency and adaptability. Today more than ever, as part of from Canada economic recovery, effective and modern competition law and enforcement are needed to promote affordability for middle-class Canadians and maintain resilient supply chains.
Today, the Honorable François-Philip ChampagneMinister of Innovation, Science and Industry, announced that it is not increasing the deal size threshold for pre-merger notification for 2022. The threshold remains at its 2021 level of $93 million. This decision not only recognizes the growth of the Canadian economy over the past year, but also takes into account the ongoing pressures the economy continues to face, including rising inflation. This decision gives the Competition Bureau a greater field of vision in its efforts to detect potentially harmful transactions, ensure they are properly reviewed before entering the market, and help protect Canadian consumers and businesses.
In recognition of the critical role of competition law in promoting vibrant and fair markets, the Minister will also carefully assess potential ways to improve its functioning, including:
- fix flaws that allow harmful behavior;
- address drip pricing more clearly;
- tackling wage-fixing agreements;
- increasing access to justice for those harmed by harmful behavior;
- adapt the law to today’s digital reality to better combat emerging forms of harmful behavior in the digital economy; and
- modernize the sanctions regime to ensure that it acts as a real deterrent against harmful commercial behaviour.
As the global pandemic continues to strain Canadian industry and consumers, competition is a key tool in creating the kind of market that will from Canada the economy to emerge stronger than ever.
“Canadians are rightly concerned about the rising cost of living, corporate concentration and a fair chance to participate in the economy. That’s why we’re taking action to help the Competition Bureau continue to protect consumers and market integrity. that our competition law remains the most effective tool to make life more affordable for Canadians. »
– The Honorable François-Philip ChampagneMinister of Innovation, Science and Industry
- Under the merger provisions of the competition lawthe Minister of Innovation, Science and Industry reviews the threshold annually.
- The Minister may leave the threshold unchanged or adjust it using the indexing mechanism provided for in competition lawwhich is based on the change of from Canada Nominal GDP or prescribe a different amount to be established by regulation.
- Planned 2021 budget $96 million over five years, starting in 2021-2022, and $27.5 million underway to improve the Competition Bureau’s enforcement capacity and ensure it is equipped with the digital tools necessary for today’s economy.
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For further information: Laurie Bouchard, Senior Manager, Communications, Office of the Minister of Innovation, Science and Industry, [email protected]; Media Relations, Innovation, Science and Economic Development Canada, 343-291-1777, [email protected]