Welcome to the September issue of Blakes Competitive Edge, a monthly publication of the Blakes Competition, Antitrust & Foreign Investment group. Blakes Competitive Edge provides an overview of recent developments in Canadian competition and foreign investment law, including updates on enforcement activity by the Canadian Competition Bureau (Bureau), recent initiatives and key trends.
Key Highlights
-
Significant amendments to the Investment Canada Act came into force on September 3.
-
Merger review activity in 2024 has kept pace with 2023, with the Bureau completing 129 merger reviews through the end of August 2024, 4% more than the number completed in August 2023 (124) and 10% fewer than the number completed in August 2022 (144).
-
The Bureau unveils the agenda for its upcoming summit on competition and artificial intelligence.
Merger Monitor
August 1 – August 31 Highlights
-
19 merger reviews announced, 23 merger reviews completed
-
Primary industries of completed reviews: mining, quarrying, and oil and gas extraction (17%); real estate and rental and leasing (17%); manufacturing (13%); finance and insurance (13%)
-
12 transactions received a No Action Letter (52%), 10 transactions received an Advance Ruling Certificate (43%)
-
Zero consent agreements (remedies) filed; zero judicial decisions filed; one transaction was abandoned by the merging parties
January – August 31 Highlights
-
136 merger reviews announced, 129 merger reviews completed
-
Primary industries of completed reviews: manufacturing (17%); real estate and rental and leasing (14%); mining, quarrying, and oil and gas extraction (13%); finance and insurance (10%); wholesale trade (8%); professional, scientific and technical services (8%)
-
69 transactions received a No Action Letter (53%), 54 transactions received an Advance Ruling Certificate (42%) and two transactions were resolved through other means
-
Two consent agreements (remedies) filed; one judicial decision filed; one transaction was abandoned by the merging parties
Merger Reviews Completed Year to Date Through August 31, 2024, by Primary Industry
Enforcement Activity
Individual Sentenced for Rigging Bids for Public Contracts in Quebec
-
On September 5, 2024, the Bureau announced that an individual has been sentenced to 12 months of house arrest after pleading guilty under the Competition Act to rigging bids for paving contracts in Quebec. The bid-rigging occurred between competitors from 2008 to 2009 in and around the Granby region.
Non-Enforcement Activity
Bureau Releases Details for Canada’s Upcoming Competition and Artificial Intelligence Summit
-
On September 5, 2024, the Bureau announced a list of panels and speakers for Canada’s Competition Summit 2024: Market Dynamics in the AI Era (Summit), which the Bureau will host on September 16, 2024. Taking place both in-person in Ottawa and virtually, the Summit will feature panels on the impact of AI on competitive dynamics in the marketplace, the current and potential future risks of AI for consumers, international approaches to competition and AI, and the meaning of a whole-of-government approach to digital markets. Lina Khan, the Chair of the U.S. Federal Trade Commission, will provide a virtual keynote speech during the Summit.
Investment Canada Act
Select Amendments to the Investment Canada Act Came Into Force on September 3, 2024
-
On September 3, 2024, select provisions of Bill C-34 came into force, amending the Investment Canada Act. These provisions include (i) increased authorities for the relevant minister to control the national security review of pending transactions (including the authority to extend the national security review of investments, impose interim conditions during a review and accept undertakings to mitigate national security risk); (ii) new rules regarding the protection and sharing of information; (iii) additional ministerial transparency and disclosure requirements; and (iv) clarified net benefit review factors regarding both Canadian personal information and Canadian government-funded intellectual property. For more information on these important changes, see our September 2024 Blakes Bulletin: Next Steps in the Overhaul of the Investment Canada Act Come Into Force.
Federal Government Releases Administrative Note on National Security Undertakings
-
On September 3, 2024, the Government of Canada released an administrative note explaining how it will administer national security undertakings under the amended Investment Canada Act. This note details (i) the process by which undertakings will be negotiated; (ii) the timelines for such negotiations; (iii) recommended content for the undertakings (with examples); (iv) the process for amending or removing undertakings; and (v) how undertakings will be both monitored and enforced. The document will be reviewed within six months of its original issuance and annually thereafter, with amendments to be made as needed.
Non-Cultural Investments
July 2024 Highlights
-
One reviewable investment approval and 148 notifications filed (125 filed for acquisitions, 23 for the establishment of a new Canadian business)
-
Country of ultimate control: United States (62%); United Kingdom (10%); France (7%); Germany (5%); China (4%); Australia (2%)
January – July 2024 Highlights
-
Three reviewable investment approvals and 706 notifications filed (542 for acquisitions and 164 for the establishment of a new Canadian business)
-
Country of ultimate control: United States (59%); United Kingdom (6%); France (5%); China (4%); Germany (2%); India (2%)
