No conclusion of abuse of dominance
OTTAWA, Nov. 21, 2017 /CNW/ - The Competition Bureau announced today that it is closing its investigation into allegations of abuse of dominance by Loblaw. The Bureau analysed the impact on competition of policies imposed by Loblaw on its suppliers. Following an extensive review of the full body of evidence, the Bureau concluded that no further action was warranted under the civil provisions of the Competition Act.
During the course of its investigation, the Bureau obtained information from a large number of suppliers, a diverse group of retailers, including Loblaw, and industry associations. The Bureau also collaborated with foreign competition authorities.
Under its policies, Loblaw sought compensation from suppliers when its profitability decreased due to other retailers' competitive activities such as when they sold products at lower prices. Loblaw put an end to several of these policies in January 2016, during the Bureau's investigation.
While a number of suppliers suggested that the policies influenced their dealings with other retailers, these allegations were not sufficiently supported by the full body of evidence. Should the Bureau receive additional information and conclude that any policies are contrary to the law, the Bureau will not hesitate to take action.
The Bureau has issued guidance on key competition law issues observed in the grocery industry. The guidance, along with the details of the Bureau's investigation, is available in a comprehensive position statement on its website.
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"The Bureau has gathered the facts and developed a deep understanding of the complex issues in the grocery industry: we have followed through on our commitment to conduct a thorough review. The line between hard bargaining and anti-competitive conduct is a fine one and firms should be careful not to cross it. The position statement we issued today in connection to this civil investigation provides guidance to the grocery industry on how to stay onside of Canada's competition law."
John Pecman,
Commissioner of Competition
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SOURCE Competition Bureau