Canada: Implemented Act to amend the Excise Tax Act and the Competition Act (C-56) regarding the abuse of a dominant position

On 15 December 2023, the Act to amend the Excise Tax Act and the Competition Act (C-56) was implemented. The amendment grants the Tribunal the power to issue orders against companies that substantially or wholly control a class or type of business in Canada if they engage in anti-competitive acts or engage in conduct that substantially prevents or lessens competition. This measure applies when behavior is intended to harm competition rather than being based on superior competitive performance. Subsection 78(1) added the direct or indirect charging of excessive and unfair selling prices. Additionally, new administrative monetary penalties have been increased to CAD 25 million for the first violation and up to CAD 35 million for subsequent violations. The limitation period has been amended to 3 years, and the legal test for abuse of a dominant position restructured.