Competition Bureau Tightens Grip on Anti-Competitive Conduct, Signals New Era of Enforcement

Updated guidelines from Canada’s Competition Bureau promise stricter oversight of mergers, digital markets, and business collaborations, impacting businesses and consumers alike. What does this mean for the Canadian economy?

19 days ago

Competition Bureau Tightens Grip on Anti-Competitive Conduct, Signals New Era of Enforcement

By Sharon Henderson, *Capital Currents*

Gatineau – Canada’s Competition Bureau is poised to dramatically reshape the landscape of business competition with the release of proposed updates to its Anti-Competitive Conduct and Agreements (ACCA) Enforcement Guidelines. The Bureau is actively soliciting feedback until January 29, 2026, but the direction is clear: a tougher stance on anti-competitive behavior, a broadened definition of what constitutes a violation, and increased scrutiny of mergers, digital markets, and collaborations.

The updated guidelines, stemming from significant amendments to the Competition Act between 2022 and 2025, aren't simply a technical refresh. They signal a fundamental shift in the Bureau’s approach, moving beyond traditional enforcement areas to tackle the complexities of the modern economy, particularly the challenges posed by digital disruption.

“This isn’t just about updating old rules,” explained a legal expert specializing in competition law, speaking on condition of anonymity. “The Bureau is signaling a willingness to aggressively pursue anti-competitive behavior across all sectors, with a particular focus on practices that harm consumers and stifle innovation.”

Beyond Traditional Cartels: A Broader Scope of Enforcement

For decades, competition law primarily focused on classic cartel behavior – price-fixing, bid-rigging, and market allocation. While these remain priorities, the new guidelines significantly expand the scope of enforcement. The Bureau is now explicitly focusing on abuses of dominant position, even those that don't involve direct collusion. This includes potentially exploitative pricing, exclusionary conduct, and leveraging market power to stifle emerging competitors.

“The Bureau is moving beyond a purely ‘effects-based’ analysis to consider conduct that could become anti-competitive,” said another source within a business association, requesting anonymity. “This creates uncertainty for businesses, as they will need to carefully assess the potential risks of even seemingly legitimate business practices.”

The changes also address the increasingly prevalent issue of business collaborations. The Bureau is scrutinizing agreements between competitors, suppliers, and customers to ensure they don’t unduly restrict competition. “The bar for proving anti-competitive effects in collaborative agreements is being lowered,” noted a competition law professor. “The Bureau is signaling a willingness to intervene more proactively in these cases.”

Digital Disruption and the Rise of Algorithmic Collusion

Perhaps the most significant shift in the updated guidelines is the explicit recognition of the unique challenges posed by digital markets. The Bureau is paying close attention to the potential for anti-competitive behavior in the digital realm, including algorithmic collusion, data exploitation, and the abuse of platform power.

“Algorithms can facilitate collusion in ways that were previously unimaginable,” explained a source familiar with the Bureau’s investigations. “Even if there’s no direct communication between competitors, algorithms can learn to coordinate pricing or output in ways that harm consumers.”

The Bureau is also scrutinizing the practices of dominant online platforms, examining whether they are leveraging their market power to unfairly disadvantage smaller competitors. This includes issues such as self-preferencing, exclusionary contracts, and the use of data to stifle innovation.

Impact on Mergers and Acquisitions

The updated guidelines also have significant implications for mergers and acquisitions. The Bureau is taking a more skeptical view of transactions that could lead to increased market concentration or reduced competition. It's prepared to rigorously assess the potential impact of mergers on prices, innovation, and consumer choice.

“The Bureau is signaling that it will be less willing to accept behavioral remedies in merger cases,” said a lawyer specializing in M&A. “It's prioritizing structural remedies, such as divestitures, to ensure that competition is preserved.”

Compliance Costs and Business Uncertainty

The changes are raising concerns among businesses about increased compliance costs and legal uncertainty. Companies will need to invest in legal expertise and compliance programs to ensure they are adhering to the updated guidelines. Smaller businesses, in particular, may struggle to navigate the complex regulatory landscape.

“There’s a real risk that these changes will stifle innovation and investment,” said a representative from a small business association. “Companies will be hesitant to take risks if they fear being penalized for inadvertently violating the new rules.”

The Bureau acknowledges these concerns and insists that it is committed to providing clear guidance to businesses. It is hosting a series of webinars and workshops to help companies understand the updated guidelines and comply with the new requirements.

A New Era of Competition Enforcement

The proposed updates to the ACCA Enforcement Guidelines represent a significant shift in Canada’s competition law landscape. The Bureau is signaling a willingness to aggressively pursue anti-competitive behavior across all sectors, with a particular focus on protecting consumers, fostering innovation, and ensuring a level playing field for businesses.

While the changes may create some uncertainty for businesses in the short term, they ultimately aim to promote a more competitive and dynamic economy. The period of public consultation will be crucial in shaping the final guidelines and ensuring that they are both effective and practical. This is a pivotal moment for competition enforcement in Canada, and the implications will be felt across the entire economy for years to come.

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