Does Canadas approach to mergers strike the right balance between consumers interest in vigorous competition and the creation of an environment from which Canadian firms can grow to become global competitors?
Effective merger review is essential if Canadians are to receive the benefits of a competitive marketplace. Anticompetitive mergers can lead to fewer choices, less innovation, and increased prices for consumers. Moreover, increased concentration arising from mergers may also facilitate cartel behaviour or the emergence of dominant firms that may abuse their market power. However, mergers can also generate benefits, such as lower costs and increased innovation. Indeed, mergers have the potential to contribute to growth and productivity of the Canadian economy. In the Bureau’s view, the current approach to merger review under the Act strikes an appropriate balance between protecting the public interest of maintaining competition and the ability of Canadian firms to grow to become global competitors. Inasmuch as it has an explicit statutory exception for transactions that are likely to generate gains in efficiency, Canada currently has the most receptive regime for the consideration of ef
