Canada: Implemented act to amend the Excise Tax Act and the Competition Act (C-56) regarding anti-competitive agreements regulation

On 15 December 2023, the Act to amend the Excise Tax Act and the Competition Act (C-56) was implemented, except section 90.1 concerning anti-competitive business collaborations. The amendment changes the definition of "competitor" in Section 90.1 (11) to include a person who could reasonably be expected to compete with respect to a product in the absence of an agreement or arrangement. Furthermore, the efficiency exception in section 96 of the Competition Act is repealed. The amendments to the Competition Act extend the provisions on corporate collaborations such as joint ventures and strategic alliances. Previously, these provisions were limited to agreements between competitors. The new amendments now extend them to non-competitors if the agreement substantially prevents or reduces competition and a significant purpose of the agreement is to harm competition. The efficiency exemption continues to apply to transactions notified under section 114 of the Competition Act and to mergers substantially completed on the day before the repeal of section 96 of the Competition Act.