A Department of Industry report showed Canadians view federal anti-trust enforcement as "lacklustre" and "ineffective.".According to Blacklock’s Reporter, the Competition Bureau admitted to its shortcomings in allowing consolidation in key sectors such as grocery retailing..The Bureau is responsible for enforcing anti-trust regulations..“Comments received from individual members of the public generally raised what participants largely considered to be the ineffectiveness of the Competition Act in preventing corporate monopolies and oligopolies leading to challenges for Canadians such as higher costs,” said the report Future of Canada’s Competition Policy Consultation: What We Heard..“The general sense emanating from the submissions was the Act must be revised having failed to prevent concentration from various industries and resulted in lacklustre enforcement,” said the report. .These findings were based on comments submitted through a department website where they sought input on potential reforms to the Competition Act..“Many individual respondents stated they felt the Act is not being enforced effectively and large corporations are gaining too much control over the market and its essential goods and services,” said What We Heard. .“They further believe the government should have the power to regulate mergers and acquisitions that surpass a certain percentage in market share to ensure no individual company gains too much power in the marketplace.”.“There was a concern that select corporations may have an undue amount of power within and control over markets,” said the report. .It follows the cabinet’s March 31 approval of the $26 billion takeover of Calgary’s Shaw Communications by its larger Toronto rival Rogers in what Commons critics called “a Frankenstein deal” that would raise telecom rates..The Competition Bureau is responsible for enforcing anti-trust laws. In a report released on June 27, the Bureau acknowledged failing to promote competition in the grocery industry..“Critics would note the Bureau’s focus on local grocery competition has allowed for a slow reduction in the number of grocers across Canada as the industry has consolidated,” said the report Grocery Competition. .“There is some truth to that.”.The Bureau acknowledged over decades it approved a succession of mergers that left three dominant grocers: Loblaw Companies, Sobeys Incorporated and Metro. .“For new players and regional independents, the Canadian grocery industry is tough to break into,” it wrote..In 1990, the Bureau approved the sale of Ultra Mart and Miracle Food Mart stores to A&P for $235 million..In 2005, the Bureau approved Metro's $1.7 billion acquisition of A&P's Dominion and Food Basic stores..In 1998, the Bureau approved the $1.5 billion sale of IGA stores to Sobeys and Loblaw Companies for a $1.6 billion acquisition of the Québec chain Provigo..In 2013, the acquisition of Western Canada Safeway stores by Sobeys for $5.8 billion received approval..In 2014, the Bureau granted approval for the $12.4 billion acquisition of 2,738 Shoppers Drug Mart stores by Loblaw Companies Limited..In 2018, the Bureau approved the $800 million acquisition of Farm Boy, an Ontario chain, by Sobeys..“More competition is a key part of the answer,” said Grocery Competition. .“Competitive markets empower consumers and drive businesses to lower prices.”
A Department of Industry report showed Canadians view federal anti-trust enforcement as "lacklustre" and "ineffective.".According to Blacklock’s Reporter, the Competition Bureau admitted to its shortcomings in allowing consolidation in key sectors such as grocery retailing..The Bureau is responsible for enforcing anti-trust regulations..“Comments received from individual members of the public generally raised what participants largely considered to be the ineffectiveness of the Competition Act in preventing corporate monopolies and oligopolies leading to challenges for Canadians such as higher costs,” said the report Future of Canada’s Competition Policy Consultation: What We Heard..“The general sense emanating from the submissions was the Act must be revised having failed to prevent concentration from various industries and resulted in lacklustre enforcement,” said the report. .These findings were based on comments submitted through a department website where they sought input on potential reforms to the Competition Act..“Many individual respondents stated they felt the Act is not being enforced effectively and large corporations are gaining too much control over the market and its essential goods and services,” said What We Heard. .“They further believe the government should have the power to regulate mergers and acquisitions that surpass a certain percentage in market share to ensure no individual company gains too much power in the marketplace.”.“There was a concern that select corporations may have an undue amount of power within and control over markets,” said the report. .It follows the cabinet’s March 31 approval of the $26 billion takeover of Calgary’s Shaw Communications by its larger Toronto rival Rogers in what Commons critics called “a Frankenstein deal” that would raise telecom rates..The Competition Bureau is responsible for enforcing anti-trust laws. In a report released on June 27, the Bureau acknowledged failing to promote competition in the grocery industry..“Critics would note the Bureau’s focus on local grocery competition has allowed for a slow reduction in the number of grocers across Canada as the industry has consolidated,” said the report Grocery Competition. .“There is some truth to that.”.The Bureau acknowledged over decades it approved a succession of mergers that left three dominant grocers: Loblaw Companies, Sobeys Incorporated and Metro. .“For new players and regional independents, the Canadian grocery industry is tough to break into,” it wrote..In 1990, the Bureau approved the sale of Ultra Mart and Miracle Food Mart stores to A&P for $235 million..In 2005, the Bureau approved Metro's $1.7 billion acquisition of A&P's Dominion and Food Basic stores..In 1998, the Bureau approved the $1.5 billion sale of IGA stores to Sobeys and Loblaw Companies for a $1.6 billion acquisition of the Québec chain Provigo..In 2013, the acquisition of Western Canada Safeway stores by Sobeys for $5.8 billion received approval..In 2014, the Bureau granted approval for the $12.4 billion acquisition of 2,738 Shoppers Drug Mart stores by Loblaw Companies Limited..In 2018, the Bureau approved the $800 million acquisition of Farm Boy, an Ontario chain, by Sobeys..“More competition is a key part of the answer,” said Grocery Competition. .“Competitive markets empower consumers and drive businesses to lower prices.”
