Competition Bureau

Inflation is down overall, so why are my grocery bills still going up?

Retrieved on: 
Sunday, July 30, 2023
Sobeys, Pressure, Palm oil, Retail Council of Canada, Soybean oil, Committee, Competition, Loblaws, Flour, Pharmacy, CEO, Lettuce, Shoppers Drug Mart, Climate change, Oil, Consumer, Agriculture, Growth, Weather, Competition Bureau, Bank, Bread, Canadian House of Commons Standing Committee on Agriculture and Agri-Food, Cryptocurrency, Retail, Grocery store, Dairy

The Consumer Price Index slowed to 2.8 per cent in June compared to last year, but food prices increased by 8.3 per cent.

Key Points: 
  • The Consumer Price Index slowed to 2.8 per cent in June compared to last year, but food prices increased by 8.3 per cent.
  • The gap between general inflation and food prices is puzzling — and frustrating — for many, especially because the Bank of Canada’s interest rate hikes don’t seem to be affecting food prices at all.
  • But food prices don’t respond to interest rate policies as much as other factors do.

Competition Bureau report

    • Canada’s competition watchdog, the Competition Bureau, recently released a report that called for more competition in the Canadian food retail market.
    • The report suggested that more competition might help high food prices in Canada.
    • However, the Competition Bureau’s report ignored this, instead focusing on individual profit growth, which was similar for all three major brands.

Foreign competition

    • The Competition Bureau’s report also suggested that more foreign competition would benefit Canadian consumers, but that foreign competitors viewed the Canadian market as tough to break into.
    • A spokesperson from the Retail Council of Canada said foreign competitors didn’t feel they would be able to compete when it comes to prices.
    • Given this, it’s difficult to see how foreign competition would actually help bring prices down.

No single cause for food inflation

    • The reality is that there isn’t a single cause for food price increases in Canada; there are a combination of factors that affect different food categories.
    • Russia’s invasion of Ukraine has had a significant impact on the prices of wheat and edible oils.
    • India curtailed wheat exports, Argentina limited wheat and soybean oil and Indonesia limited palm oil exports.

A perfect storm

    • Flooding in California’s Salinas Valley caused disruptions in lettuce and tomato production, leading to higher prices for these products.
    • Europe had price increases and product shortages this winter due to bad weather conditions in northern Africa and southern Europe.
    • All these factors are happening simultaneously to create a perfect storm of food price increases.

Increasing monopoly power poses a threat to Canada's post-pandemic economic recovery

Retrieved on: 
Sunday, July 16, 2023
Freedom, Bell, Metro, Industry, Canadian Pacific Railway, The Competition Act, 2002, TD, Competition Act, Molson Coors, Telecommunications, Bureau, Hamstringing, Shaw Communications, History, Bank of Montreal, Competition, Toronto-Dominion Bank, Vidéotron, Loblaws, National bank, Rogers Communications, Shaw, Carleton University, Judgement, Freedom Mobile, Royal Bank, Banking in Canada, Walmart, Population, Rogers, Boswell, CIBC, AB InBev, Growth, Efficiency, Competition Bureau, Bank, Synovial joint, Environment, Scotiabank, Legislation, Renewable energy, Retail, Grocery store, Airline, Generic drug, Sales, Costco, Telus, Sobeys

A select few corporations dominate key sectors, leading to reduced competition, rising prices and limited purchase options for consumers.

Key Points: 
  • A select few corporations dominate key sectors, leading to reduced competition, rising prices and limited purchase options for consumers.
  • A recent report from the Competition Bureau found that a lack of competition in the grocery sector is resulting in higher food prices.
  • The grocery industry is dominated by five major players — Loblaws, Metro, Empire (the owner of Sobeys), Walmart and Costco.

History of monopolies

    • Canada’s economy has historically been marked by notable monopolies, thanks to its vast geographical expanse and relatively sparse population.
    • Entities like the Hudson’s Bay Company and Canadian Pacific Railway company played significant roles in the country’s development.
    • This largely happened out of concern that domestic companies would be overwhelmed by American competitors unless they grew significantly.

The Rogers-Shaw merger

    • Despite these conditions, some remain skeptical about the impact of the merger on competition in Canada’s telecommunications sector.
    • Some critics have argued the merger may lead to higher prices for consumers and less innovation.
    • The merger could lead to a dominant market share in Ontario, reducing competition and potentially leading to higher internet prices.

Loopholes in competition law

    • The merger has sparked controversy because it exploited weaknesses in Canada’s anti-monopoly law, the Competition Act, to push the deal through.
    • As Canada’s competition watchdog, the Competition Bureau can review mergers to determine if they will be harmful to competition.

Challenges and opportunities

    • Monopolies have the potential to stifle innovation — a key driver of economic growth, as a lack of competition tends to dampen innovative efforts.
    • As Canada embarks on its post-pandemic economic recovery, policymakers must ensure economic resilience and inclusiveness while preventing existing monopoly issues from worsening.

Competition Bureau makes recommendations to promote competition in Canada's grocery industry

Retrieved on: 
Tuesday, June 27, 2023
Government, Canada, Introduction, Growth, Competition Bureau, Competition, Oil, Retail, Grocery store, Bureau, QC

Today, the Competition Bureau has published its market study report ꟷ Canada Needs More Grocery Competition ꟷ which recommends that all levels of Canadian government act to increase competition in the grocery industry.

Key Points: 
  • Today, the Competition Bureau has published its market study report ꟷ Canada Needs More Grocery Competition ꟷ which recommends that all levels of Canadian government act to increase competition in the grocery industry.
  • It examines the state of competition in the grocery industry and identifies barriers to increasing competition.
  • During the study, the Competition Bureau engaged with a wide range of stakeholders, including domestic and international grocery retailers of all sizes, industry experts, international competition authorities, and Canadian consumers.
  • In its advocacy role, the Bureau identifies barriers to competition in different sectors of the economy, and makes recommendations to policymakers on how to reduce these barriers.

Canada Bread Company Limited sentenced to $50 million in fines for price-fixing

Retrieved on: 
Wednesday, June 21, 2023
Ontario Superior Court of Justice, Learning, Competition Act, Competition Bureau, Public, Public Prosecution Service of Canada, PPSC, Lawyer, Court, CBCL, Pharmaceutical industry, Bureau

TORONTO, June 21, 2023 /CNW/ - Today, in the Ontario Superior Court, Canada Bread Company Limited (CBCL) was sentenced to fines totaling $50 million after the company pleaded guilty to four counts of fixing prices contrary to section 45 of the Competition Act.

Key Points: 
  • TORONTO, June 21, 2023 /CNW/ - Today, in the Ontario Superior Court, Canada Bread Company Limited (CBCL) was sentenced to fines totaling $50 million after the company pleaded guilty to four counts of fixing prices contrary to section 45 of the Competition Act.
  • CBCL cooperated with the investigation upon learning of the allegations in 2017.
  • The PPSC is also responsible for providing prosecution-related advice to law enforcement agencies across Canada.
  • Information on resolution discussions and how they work can be found in the publicly available PPSC Deskbook: https://www.ppsc-sppc.gc.ca/eng/pub/fpsd-sfpg/fps-sfp/tpd/p3/ch07.html

Canada Bread sentenced to $50 million fine after pleading guilty to fixing wholesale bread prices

Retrieved on: 
Wednesday, June 21, 2023
Giant, Ontario Superior Court of Justice, Canada Bread, Bread, Maple Leaf Foods, Competition Act 1998, Competition Act, Bureau, Competition Bureau, Public, Immunity, PPSC, GWL, George Weston Limited, Metro Inc., Limited, Giant Tiger, George Weston Foods, Public Prosecution Service of Canada, Walmart, Loblaw Companies, General store, Drug, QC, Sobeys

Canada Bread admitted that it arranged with its competitor, Weston Foods (Canada) Inc., to increase prices for various bagged and sliced bread products, such as sandwich bread, hot dog buns and rolls.

Key Points: 
  • Canada Bread admitted that it arranged with its competitor, Weston Foods (Canada) Inc., to increase prices for various bagged and sliced bread products, such as sandwich bread, hot dog buns and rolls.
  • At the time of the price-fixing, Canada Bread was under the ownership of Maple Leaf Foods.
  • The fine represents the maximum applicable under the law, less a leniency discount for Canada Bread's cooperation and guilty plea.
  • The record fine for Canada Bread is a significant milestone in the Bureau's ongoing investigation.

Canada Bread Resolves Competition Bureau Inquiry into Packaged Bread

Retrieved on: 
Wednesday, June 21, 2023
Ontario Superior Court of Justice, Maple Leaf Foods, Competition, Loblaws, Grupo Bimbo, Sale, Investment, Competition Bureau, Maple syrup, Medical device, Canada Bread, Limited

TORONTO, June 21, 2023 /CNW/ - In a proceeding in the Ontario Superior Court in Toronto today, Canada Bread Company, Limited ("Canada Bread") resolved allegations made against it as part of an investigation by the Competition Bureau of Canada ("Competition Bureau") into packaged bread that began in 2016.

Key Points: 
  • TORONTO, June 21, 2023 /CNW/ - In a proceeding in the Ontario Superior Court in Toronto today, Canada Bread Company, Limited ("Canada Bread") resolved allegations made against it as part of an investigation by the Competition Bureau of Canada ("Competition Bureau") into packaged bread that began in 2016.
  • Canada Bread will pay a $50 million fine concerning two wholesale price increases implemented by Weston Foods (Canada) Inc. ("Weston") and Canada Bread more than a decade ago, when Canada Bread was majority owned and controlled by Maple Leaf Foods Inc. (Maple Leaf Foods).
  • Under Grupo Bimbo's ownership, Canada Bread provided material and consistent cooperation to the Competition Bureau.
  • We are pleased to have resolved this matter, and we look forward to building upon our investments in Canada" said Alice Lee, Vice President, Canada Bread.

Canadian Digital Regulators Forum established to better serve Canadians in the digital era

Retrieved on: 
Friday, June 9, 2023
Commissioner, OPC, Partnership, Canadian Radio-television and Telecommunications Commission, Privacy, Competition, Artificial intelligence, Competition Bureau, CRTC, CNW, Privacy Commissioner, Forum, Whaling, QC, Bureau

Through the creation of the Canadian Digital Regulators Forum, the three agencies will exchange best practices, conduct research, and collaborate on matters of common interest, such as artificial intelligence and data portability.

Key Points: 
  • Through the creation of the Canadian Digital Regulators Forum, the three agencies will exchange best practices, conduct research, and collaborate on matters of common interest, such as artificial intelligence and data portability.
  • This partnership will strengthen the work of all three agencies as they keep pace with rapid changes in the digital economy.
  • "We must ensure that all Canadians have what they need to take advantage of the possibilities of the digital age.
  • Chairperson and Chief Executive Officer, CRTC
    "To best serve Canadians in today's fast-evolving digital economy, it is critical that regulators collaborate across intersecting spheres.

FTC, DOJ Issue Summary on Joint Pharmaceutical Merger Analysis Workshop

Retrieved on: 
Thursday, June 1, 2023
Justice, Office of Inspector General, U.S. Department of Health and Human Services, Organized Crime Drug Enforcement Task Force, DOJ, U.S. Department of Justice Office of Legislative Affairs, Blog, Federal Trade Commission, Competition, Task force, European Commission, FTC, United States Department of Justice Antitrust Division, Appendix, Competition Bureau, News, Social media, Pharmaceutical industry

The workshop, which took place June 14-June 15, 2022, brought together FTC and DOJ staff, offices of state attorneys general, international enforcement partners, academics, and other experts.

Key Points: 
  • The workshop, which took place June 14-June 15, 2022, brought together FTC and DOJ staff, offices of state attorneys general, international enforcement partners, academics, and other experts.
  • It served as a culmination of the Multilateral Pharmaceutical Merger Task Force, an effort to rethink the approaches to pharmaceutical merger review formed by then-Acting Chairwoman Rebecca Kelly Slaughter.
  • The workshop summary describes each speaker’s remarks and provides an overview of panel discussions on market concentration in the pharmaceutical sector, merger remedies, innovation aspects of pharmaceutical mergers, and the intersection between conduct by pharmaceutical companies and merger analysis.
  • The summary also includes an appendix of ideas stemming from the workshop discussions.

FTC, DOJ Issue Summary on Joint Pharmaceutical Merger Analysis Workshop

Retrieved on: 
Thursday, June 1, 2023
Justice, Office of Inspector General, U.S. Department of Health and Human Services, Organized Crime Drug Enforcement Task Force, DOJ, U.S. Department of Justice Office of Legislative Affairs, Blog, Federal Trade Commission, Competition, Task force, European Commission, FTC, United States Department of Justice Antitrust Division, Appendix, Competition Bureau, News, Social media, Pharmaceutical industry

The workshop, which took place June 14-June 15, 2022, brought together FTC and DOJ staff, offices of state attorneys general, international enforcement partners, academics, and other experts.

Key Points: 
  • The workshop, which took place June 14-June 15, 2022, brought together FTC and DOJ staff, offices of state attorneys general, international enforcement partners, academics, and other experts.
  • It served as a culmination of the Multilateral Pharmaceutical Merger Task Force, an effort to rethink the approaches to pharmaceutical merger review formed by then-Acting Chairwoman Rebecca Kelly Slaughter.
  • The workshop summary describes each speaker’s remarks and provides an overview of panel discussions on market concentration in the pharmaceutical sector, merger remedies, innovation aspects of pharmaceutical mergers, and the intersection between conduct by pharmaceutical companies and merger analysis.
  • The summary also includes an appendix of ideas stemming from the workshop discussions.

Competition Bureau reaches agreement with Superior to preserve competition in Canada's portable heating fuels market

Retrieved on: 
Wednesday, May 31, 2023
Commissioner, QC, Bureau, Competition Bureau, Competition Tribunal, Propane, Sale, Competition, Acquisition, Mining, Superior, Natural gas

To resolve the Bureau's concerns, Superior has agreed to sell eight propane distribution hubs in Northern Ontario, including customer contracts and associated operating assets at each hub.

Key Points: 
  • To resolve the Bureau's concerns, Superior has agreed to sell eight propane distribution hubs in Northern Ontario, including customer contracts and associated operating assets at each hub.
  • The sale will be made to an independent purchaser to be approved by the Commissioner of Competition.
  • On December 22, 2022, Superior and Certarus entered into a definitive agreement whereby Superior would acquire all of the outstanding common shares of Certarus.
  • Superior and Certarus both supply portable heating fuels (propane and natural gas, respectively) over the road to industrial customers in Northern Ontario.