Competition law

How BC law treats it

Canada's competition law is the federal Competition Act, RSC 1985, c C-34. There is no BC competition statute. The Act is enforced by the Commissioner of Competition, who heads the Competition Bureau, with civil matters decided by the Competition Tribunal and criminal matters prosecuted in the courts. Some conduct is criminal. Under s. 45, agreements between competitors to fix prices, allocate markets or customers, or restrict output are offences, as are agreements between unaffiliated employers to fix wages or not to poach each other's employees. Bid rigging is a separate offence under s. 47. Knowingly or recklessly making materially false or misleading representations to the public is a criminal offence under s. 52. Anyone who suffers loss from criminal conduct can sue for damages under s. 36. Other conduct is reviewable on a civil basis, including abuse of a dominant position (ss. 78 and 79), misleading advertising and drip pricing (s. 74.01), and certain restrictive agreements between competitors (s. 90.1). The Tribunal can order the conduct to stop and impose administrative monetary penalties. Since June 20, 2025, private parties can seek leave to apply to the Tribunal under ss. 74.1, 79 and 90.1, adding to the earlier private access for refusal to deal, price maintenance and exclusive dealing (ss. 75 to 77). Mergers of any size can be challenged under s. 92 if they are likely to prevent or lessen competition substantially (see Tervita Corp v Canada (Commissioner of Competition), 2015 SCC 3). Transactions above the size thresholds in Part IX require advance notification to the Bureau and a waiting period before closing; for 2026 the transaction size threshold is $93 million and the party size threshold is $400 million. The Act was amended significantly between 2022 and 2024, so thresholds, penalties and private access rights should be checked for each transaction.

What it means for your business

Competition law reaches ordinary business conduct, not only large companies. A casual agreement with a competitor on pricing, a no-poach understanding with another employer or an inflated advertised price can lead to criminal charges, penalties and class action damages. In M&A, buyers and sellers must check whether pre-merger notification is required and build the waiting period into the closing timeline. Compliance training and clear rules for trade association contacts are inexpensive protection. Example: Two Lower Mainland landscaping companies agree informally not to hire each other's crew leads. That agreement can be a criminal offence under s. 45 of the Competition Act, even though no prices were discussed.

Risks and common mistakes

Calling it antitrust and assuming US rules or a BC statute apply. Sharing pricing or bidding plans with competitors at trade association meetings. Agreeing with another employer not to hire each other's employees. Advertising a price that leaves out mandatory fees, which can be drip pricing. Closing an acquisition without checking whether pre-merger notification is required.