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Decentralized Democracy

Patricia Lattanzio

  • Member of Parliament
  • Member of the panel of chairs for the legislative committees Member of the National Security and Intelligence Committee of Parliamentarians
  • Liberal
  • Saint-Léonard—Saint-Michel
  • Quebec
  • Voting Attendance: 66%
  • Expenses Last Quarter: $104,850.21

  • Government Page
Mr. Speaker, today I rise to address the chamber with respect to Bill C-352, which would amend the Competition Act. I think we all agree in the chamber that a stronger competition enforcement regime would be good for all Canadians. The bill proposed by the New Democratic Party, while receptive to the need for change in competition law, and generally aligned with the government's overall direction to date, must, however, be examined in light of the vast number of changes that overlap with and have already been introduced by Bill C-56 and Bill C-59. Bill C-56 became law in December 2023, while Bill C-59 remains under consideration by Parliament at the present time. Bill C-56 implements, and Bill C-59 would implement, an overhaul of the Competition Act following the extensive consultations undertaken in 2022 and in 2023. The government received a great deal of input throughout its consultations, bolstering the knowledge gained over the years of stewardship over this law. The amendment packages assembled in its two bills address most of the issues identified in the law that historically made it weaker than regimes of Canada's closest partners. That would no longer be the case. Modernizing the Competition Act is a necessary step in making Canada's economy more affordable for consumers and more fair and accessible to business. The government's extensive commitment to competition law reform was led by Bill C-56, the Affordable Housing and Groceries Act, followed by Bill C-59, the fall economic statement implementation act, 2023. Both of these bills are directed at enhancing affordability and competition, and together they represent the most comprehensive reform package to the Competition Act in decades. They respond to the submissions of hundreds of very different stakeholders, including businesses, legal experts, academics, non-governmental organizations and the commissioner of competition himself. Bill C-56 implemented a set of targeted but critical amendments, following especially from the Competitions Bureau's market study on Canada's retail grocery sector. As members already know, Bill C-56 brought much-needed changes such as allowing information to be compelled under court order in the course of a market study, helping to remove barriers when diagnosing potential competition issues. Bill C-56 also repealed the efficiencies exceptions for anti-competitive mergers and collaborations, and in so doing eliminated what many observers consider to have been the single biggest contributor to corporate concentration in Canada. The bill further allowed for better prevention and remedy of the abuse by larger players of their dominant position by requiring only proof of anti-competitive intent or effects to prohibit certain forms of conduct. This more appropriately allocates the burden of proof, as compared to the previous test, which significantly limited the number of instances where the bureau could intervene. Finally, Bill C-56 addressed harm from collaborations between non-competing parties that are designed to limit competition. Once this provision is in effect, the bureau would be able to review any type of collaboration whose purpose it is to restrain competition and seek a remedy, including an order to prevent the activity where competition is being substantially harmed or is likely to be. This would be especially impactful on restrictive covenants between grocers and landlords, allowing more grocers to set up shop near competitors. Bill C-56 was, of course, amended in committee through a multi-party effort, incorporating several of the elements in Bill C-352 that now no longer require consideration. Bill C-59 represents an even more substantial overhaul in our competition enforcement regime, addressing a large variety of aspects of the Competition Act. The amendments would give the Competition Bureau a longer period to detect and address anti-competitive mergers that are not notified in advance, helping to address “killer acquisitions” in the digital market. The bill would broaden the bureau's review of competitor collaborations to include those that harmed competition in the past, and would allow for financial penalties to be sought when necessary. Importantly, Bill C-59 would facilitate private actions against a broader range of anti-competitive or harmful practices and empower those affected to seek financial compensation in many cases. This improvement would complement the bureau's work in protecting the marketplace. The bill would also ensure that costs awards would not be ordered against the commissioner of competition in the vast majority of circumstances, another element addressed by Bill C-352. The bill also includes anti-reprisal provisions, which would ensure that co-operation with the bureau or participation in legal proceedings could not be punished by stronger businesses. Additionally, it is worth mentioning that Bill C-59 would strengthen the law's testament of greenwashing the false advertising of sustainability claims while also facilitating environmentally beneficial collaborations that would not harm competition. Moreover, it would ensure that a means of diagnosis for repair could not be denied in a way that would harm competition. All in all, little remains in Bill C-352 that has not already been addressed. On the contrary, Bill C-59 includes several elements missing from this private member's bill. The government's consultation saw over 130 stakeholders raise over 100 reform proposals. All submissions made by identified groups are publicly available, and the government published a “what we heard” report synthesizing them. This public process has been a key source of input to help us develop reform proposals. We are confident that the measures included in government bills comprehensively address the needs expressed by Canadians. In conclusion, I think it is fair to say that the ambition of Bill C-352 correctly reflects the importance Canadians place on having a strengthened competition law framework. However, all of the major issues it raises have been or are being substantially dealt with through Bill C-56 and Bill C-59. As such, I would encourage members of the House interested in advancing competition reform to prioritize the rapid passage of Bill C-59.
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