Canada to pass new antitrust law
The authorities hope to reduce prices for goods and services through increased competition.
Many Canadians are unhappy with the rising prices of food, medicine and everyday services. Inflation is partly to blame, but residents suspect that the local economy lacks fair competition. There are monopolies and even price fixing in different areas. Recently, the federal government listened to the opinions of Canadian consumers.
The country's authorities intend to revise the antitrust laws, supplement them and adopt new ones. According to lawmakers, lawyers and economists, Canada's antitrust laws lag behind the United States, Singapore and other booming economies.
So far, the Canada Competition Bureau has proposed 50 amendments to existing laws. Not all of the proposed changes are radical, but they will help protect consumer interests and create fair competition in business. For example, one of the amendments suggests obliging companies to publish information about price changes and their reasons. Now they do it voluntarily, because of which many sellers deceive buyers.
Another recommendation is to impose stricter rules on mergers of companies and industries. One of the most high-profile mergers in recent memory was the massive merger of Rogers Communications and Shaw Communications, approved by the government in March. The antitrust bureau argued in favor of banning it. Both companies already controlled a significant portion of the communications market in Canada. Now, by merging into one organization, they will be able to impose their prices on the market for Internet and telephone service.
In Australia and the U.S., merger laws are stricter and antitrust agencies can veto them. In Canada, mergers of industries and organizations are barely controlled by law, which leaves a large loophole for monopolists.
The Antitrust Division of Canada believes that the country is 40-50 years behind the United States, Australia, and Britain. Canada's current problems in these countries were defeated half a century ago. It is urgent to take action and update the laws so as not to fall behind the neighboring powers.
The initiative has already had its critics. Some lawyers, especially those representing the interests of large corporations, believe that too rigid legislation will on the contrary prevent fair competition. It would be just as unfair if the best producers of goods and services could not raise their prices. For example, quality clothes that can be worn for several years should not cost as much as those that tear in one season.
The Antimonopoly Service responds that the amendments to the laws are not just about pricing. Increased competition should lead to innovation, better customer service, and other creative solutions. Customers are attracted not only by low prices, but also by high quality, a pleasant atmosphere and interesting ideas. For example, a cafe with modern Korean pastries has become very popular in Vancouver.
