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Bill C-472

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1st Session, 36th Parliament,
46-47-48 Elizabeth II, 1997-98-99

The House of Commons of Canada

BILL C-472

An Act to amend the Competition Act (abuse of dominant position)

R.S., c. C-34

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

1. Paragraphs 78(h) and (i) of the Competition Act are replaced by the following:

    (h) requiring or inducing a supplier to sell only or primarily to certain customers, or to refrain from selling to a competitor, with the object of preventing a competitor's entry into, or expansion in, a market;

    (i) selling articles at a price lower than the acquisition cost for the purpose of disciplining or eliminating a competitor or some other purpose that adversely affects a supplier or competitor;

    (j) requiring a supplier to pay a fee to a retailer as a condition for selling a product, if the fee is unrelated to, or in excess of, the actual costs incurred by the retailer with respect to the product;

    (k) squeezing, by a vertically integrated retailer, of the margin available to an unintegrated person competing with the retailer, for the purpose of impeding or preventing the person's entry, or expansion, into a market; and

    (l) unilaterally withholding amounts owing to a supplier without the prior agreement of the supplier

      (i) for the purpose of disciplining the supplier, or

      (ii) for some other purported reason that has not been mutually agreed upon by the parties to the transaction .

2. Subsection 79(1) of the Act is replaced by the following:

Prohibition where abuse of dominant position

79. (1) Where, on application by the Director, the Tribunal finds that

    (a) one or more persons substantially or completely control, throughout Canada or any area thereof, a class or species of business,

    (b) that person or those persons have engaged in or are engaging in a practice of anti-competitive acts or any other abusive practice towards a competitor, supplier or customer ,

    (c) the practice has had, is having or is likely to have the effect of preventing or lessening competition substantially in the wholesale or retail market,

the Tribunal may make an order prohibiting all or any of those persons from engaging in that practice.