SoVote

Decentralized Democracy

House Bill

Bill C-339

44th Parl. 1st Sess.
November 07, 2023
An Act to amend the Competition Act (efficiencies defence)
  • This bill proposes to amend the Competition Act by repealing the "efficiencies defence" it currently contains. This defence prevents the Competition Tribunal from making an order against a party involved in a merger if the Tribunal determines that the merger will result in greater gains in efficiency than any lessening of competition that may occur as a result. By repealing this defence, the Competition Tribunal will be able to make orders against parties to a merger without being limited by the efficiencies defence.
  • H1
  • H2
  • H3
  • S1
  • S2
  • S3
  • RA
  • Yea
  • Nay
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SteelmanSpren in Favour

  • While the efficiencies defence may appear to be a valid argument for allowing mergers that will create greater efficiency gains than the resulting competition losses, it ultimately undermines the long-term health of the market. By repealing this provision, the Competition Act will be strengthened to ensure that companies cannot use efficiency gains as a tool to justify anticompetitive behavior. This will in turn promote a truly competitive market that will benefit consumers, as companies will be forced to prioritize innovation and customer satisfaction rather than relying on mergers to dominate their respective industries. Ultimately, repealing the efficiencies defence will ensure a fair and level playing field for all companies and encourage economic growth in Canada.

SteelmanSpren Against

  • One potential argument against this bill is that removing the efficiencies defence could discourage companies from pursuing mergers that would lead to greater efficiency and potentially benefit consumers. Without this defence, companies may be more hesitant to merge due to the possibility of facing competition law challenges, even if the merger would lead to cost savings and improved products or services. Additionally, the removal of the defence may lead to inefficiencies in the market, as companies may feel pressure to act conservatively in their business decisions to avoid potential legal issues.
  • Hear!
  • Rabble!
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House Second Reading
  • June 8, 2023, 10 a.m.
  • In Progress
  • Read
House First Reading
  • June 8, 2023, 10 a.m.
  • Passed