Competition Law Developments In Canada: Managing Risk In A Changing Enforcement Environment

Canadian competition law and foreign investment reviews enforcement continues to evolve as regulators balance stronger enforcement powers with broader economic priorities, including productivity, investment attraction and reducing regulatory burdens. Businesses should expect continued scrutiny across mergers, commercial conduct, marketing practices and litigation exposure.

Five key developments are outlined below.

1. Merger Oversight. Recent amendments to the Competition Act, including a new structural presumption tied to market shares and concentration levels, and expanded powers to review non-notifiable transactions after closing, have strengthened the Competition Bureau’s ability to challenge mergers. Businesses pursuing transactions in Canada should carefully assess market definition and shares, stakeholder concerns and remedy planning at an early stage of deal planning.
2. Foreign Investment. Amendments to the Investment Canada Act will introduce a new pre-closing filing regime for certain investments in sensitive sectors, while national security and economic security considerations continue to shape the review process. At the same time, Canada is seeking to promote foreign investment and strengthen international trade relationships, creating a more nuanced enforcement environment for cross-border transactions.
3. Market Studies. The Bureau is increasingly relying on market studies to gather information and shape policy discussions in sectors linked to affordability, productivity and consumer welfare. Legislative amendments now allow the Bureau to seek court orders compelling businesses to produce documents and data, even where no wrongdoing is alleged. Businesses should ensure that internal documents and communications are carefully prepared, given potential enforcement implications.
4. Conduct Risks. Amendments to the abuse of dominance and civil agreement provisions have expanded the enforcement scope, significantly increased potential financial exposure for businesses and allowed for more private actions. Conduct may now attract scrutiny based solely on anti-competitive purpose or effect in certain circumstances, while expanded rules governing agreements between non-competitors create additional risks for commercial arrangements such as exclusive distribution, restrictive covenants and supply agreements.
5. Marketing Exposure. Deceptive marketing remains a key enforcement priority for the Bureau, particularly in areas such as greenwashing, drip pricing and “Made in Canada” claims. At the same time, expanded private access rights before the Competition Tribunal are creating new opportunities for both commercial litigants and public interest applicants to pursue competition claims directly. Businesses should review compliance programs, commercial agreements and advertising practices to reflect the evolving enforcement landscape.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.