Pre-merger notification transaction-size threshold to remain at $93M and Canada's competition law to be examined
February 7, 2022 - Ottawa, Ontario
Competition in the economy is a driving force behind innovation, efficiency and adaptability. Now more than ever, as part of Canada's economic recovery, effective and modern competition law and enforcement are necessary to promote affordability for middle-class Canadians and maintain resilient supply chains.
Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, announced that he is not increasing the transaction-size threshold for the advance notification of mergers 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 last year but also takes into consideration the ongoing pressures the economy continues to face, including rising inflation. This decision gives the Competition Bureau a greater field of view in its efforts to detect potentially harmful transactions, ensure that they are properly reviewed before taking hold in the marketplace, and help protect Canadian consumers and businesses.
In recognition of the critical role of the Competition Act in promoting dynamic and fair markets, the Minister will also carefully evaluate potential ways to improve its operation, including:
- fixing loopholes that allow for harmful conduct;
- more clearly addressing drip pricing;
- tackling wage fixing agreements;
- increasing access to justice for those injured by harmful conduct;
- adapting the law to today's digital reality to better tackle emerging forms of harmful behaviour in the digital economy; and
- modernizing the penalty regime to ensure it serves as a genuine deterrent against harmful business conduct.
With the global pandemic continuing to cause stresses to Canadian industry and consumers, competition is a key tool to create the kind of marketplace that will allow Canada's economy to emerge stronger than ever.
