The Competition Bureau has opened up to public consultation its proposed cartel enforcement guidelines, which address Competition Act provisions involving illegal business agreements.
The cartel provisions tackle bid-rigging, price-fixing, market allocation, supply restriction, and wage-fixing and no-poaching agreements, which are criminal offences under the Act. They also cover foreign conspiracy implementation and agreements involving professional sports and between federal financial institutions.
The guidelines replace parts of the Competitor Collaboration Guidelines relating to cartel provisions and the enforcement guidelines on wage-fixing and no poaching agreements. The pitched guidelines outline how the bureau investigates and evaluate potentially illegal agreements; it also clarifies how the bureau differentiates criminal from civil enforcement.
The guidelines define legitimate business collaborations, how statutory defences and exceptions such as the ancillary restraints defence are applied, and possible remedies like fines, imprisonment, and prohibition orders. The guidelines also outline the bureau’s immunity and leniency programs.
According to the Competition Bureau, the guidelines are useful for businesses entering into joint ventures or collaborations with competitors and other businesses. They will include examples like joint ventures, franchise systems, labour market agreements, and bid‑rigging to facilitate compliance.
Nonetheless, these guidelines do not cover mergers and civilly reviewable agreements and conduct.
The Competition Bureau urged businesses, legal practitioners, procurement authorities, and academics to give input on the cartel enforcement guidelines. Parties can email feedback to [email protected].
The Competition Bureau will publish submissions on its website unless confidentiality is requested. The window for feedback will be open until September 13. The bureau will then assess all submissions and release the finalized guidelines.
The cartel enforcement guidelines were drafted following Competition Act reforms over 2022-2025. These changes focused on anti-competitive conduct like illegal business agreements and market power abuse.
The bureau also released the anti-competitive conduct and agreements enforcement guidelines, which outline how the body enforces civil provisions related to anti-competitive conduct and agreements. Last year, the Competition Bureau opened these guidelines up to consultation; the submissions window closed on January 29 this year. The bureau is presently evaluating the draft guidelines and is set to release updated guidance.
Meanwhile, the merger enforcement guidelines tackle the merger review process under s. 92 of the Competition Act.