Bill C-41 (Historical)

An Act to amend the Competition Act

This enactment amends the Competition Act to allow the Competition Tribunal to impose an administrative monetary penalty in respect of cases of abuse of dominant position by telecommunications service providers.

[Sheridan Scott]

Well, we certainly hope so, and I hope I'll have the chance to come back and speak to you again when Bill C-41 comes before this committee.

What I can say for now is that we've clearly been on the record supporting the introduction of administrative penalties relating to abuse of dominance in the marketplace. We believe this has an important deterrent role to play, as well as providing the opportunity for the Competition Tribunal to address the anti-competitive behaviour in a financial way, if indeed it proceeds that long. But we trust it will have both this deterrent effect, so there will be less of this activity in the marketplace, and provide us with tools to address the situation, if indeed the anti-competitive behaviour takes place.

[Colin Carrie, Conservative, Oshawa, ON]

Okay, thank you very much.

I'd like to talk a little bit about the proposed Bill C-41. One of my colleagues brought up abuse of dominance, and I think that's something we're all concerned about.

If Bill C-41 is adopted, will it help prevent abuse of dominance in the market?

[Sheridan Scott]

It's not up to me to determine what procedure should be followed. Bill C-41 is perfectly in keeping with the recommendations of the review panel, because it recommended—

In fact, they referred to Bill C-19, presuming that this would become law. They felt that the CRTC should have the same kind of system of sanctions as they did, presuming that C-19 would pass. That's one reason why that part was repeated in Bill C-41.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

The minister announces a directive. Then he tables Bill C-41 during the consultations. Maybe this doesn't come under your purview, but it seems to me that that's putting the cart before the horse.

[Sheridan Scott]

They go together. There are three parts, if I can put it that way. There's the directive, there's Bill C-41 and there's the change.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Yes, but Bill C-41 was tabled before the market was deregulated.

[Sheridan Scott]

—and that we be allowed to impose pecuniary sanctions when it is deregulated.

From what we can see, Bill C-41 is supposed to follow deregulation. So it is indeed in keeping with the report.

There were no sanctions for the CRTC, but this was limited to the regulatory period. So the fact of giving us the power to impose pecuniary sanctions as soon as the market was deregulated was part of the recommendations contained in the report.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

In your opinion, is Bill C-41, which gives you the power to impose sanctions, sufficiently in keeping with the recommendations of the Telecommunications Policy Review Panel or is this a power that's given to you piecemeal? Are there other points in the review panel's recommendations that seem essential to you?

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

For example, Bill C-41 states that the Competition Bureau is responsible for imposing fines, while the report gave the CRTC this responsibility.

Are the minister's positions in keeping with the thrust of the report? I know this is somewhat delicate for you.

Competition Act

[Maxime Bernier, Conservative, Minister of Industry]

moved for leave to introduce C-41, An Act to amend the Competition Act.

(Motions deemed adopted, bill read the first time and printed)