Can a dominant company abuse its market power to push out competitors or raise prices?

What the Law Says

Canada’s Competition Act contains specific rules to prevent dominant companies from unfairly using their market power to harm competition.

Section 79 is the main provision addressing abuse of dominance. It empowers the Competition Tribunal to make orders against firms found to be dominant and engaging in anti-competitive conduct that has had, is having, or is likely to have the effect of substantially lessening competition in a market.

To trigger s. 79, three elements must be proven: (1) the firm is dominant (or part of a dominant group) in a relevant market; (2) it engaged in a practice of anti-competitive conduct; and (3) that conduct has had, is having, or is likely to have the effect of substantially lessening competition.

The Tribunal may issue orders prohibiting the conduct, requiring the firm to take corrective actions (e.g., licensing intellectual property or selling assets), or imposing other remedies — including orders lasting up to ten years.

Statutory Text

Tribunal may make an order where a dominant firm engages in anti-competitive conduct that substantially lessens competition.

— Competition Act, s. 79 — Abuse of dominant position

What to Do

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