Canada watchdog urges stricter merger review, antitrust reform

Canada’s competition watchdog called for stronger merger review rules on Wednesday and recommended some 50 improvements to what it said was outdated antitrust legislation.

“Canada needs more competition. And Canadians need a modern and effective competition law to support that,” the Competition Bureau said in a statement.

Canadians have been left with fewer and pricier choices in everything from telecoms to banking after decades of industry consolidation, consumer advocates say. Soaring inflation has worsened the issue of affordability.

The bureau’s recommendations are aimed at improving merger evaluations, tackling deceptive marketing and conducting market studies, among other goals.

The watchdog said merger review rules were weak and need to be significantly re-tooled “to address issues with market concentration and harm to the public interest in competition.”

The agency is coming off a major defeat in its efforts to block a C$20 billion ($14.6 billion) merger between Rogers Communications Inc (RCIb.TO) and Shaw Communications Inc (SJRb.TO) to create the country’s No. 2 telecoms operator. Reuters