Thank you, Mr. Chair, for inviting us to appear today.
My name is Richard Bilodeau. I am an Assistant Deputy Commissioner in the Civil Matters Branch of the Competition Bureau.
I am accompanied today by Ann Salvatore, acting assistant deputy commissioner in the criminal matters branch.
I would like to briefly describe the mandate of the Competition Bureau and give an overview of the bureau's investigative powers under the Competition Act.
The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses prosper in a competitive and innovative marketplace. Headed by the Commissioner of Competition, the bureau is responsible for the administration of the Competition Act, the Consumer Packaging and Labelling Act except as it applies to food, the Textile Labelling Act, and the Precious Metals Marking Act.
The Competition Act provides the commissioner with the authority to investigate anticompetitive behaviour. The Competition Act contains both civil and criminal provisions, and covers conduct such as bid rigging, false or misleading representations, price fixing or abusing a dominant market position, among other things.
The Competition Bureau also reviews mergers over a certain size to determine whether they would result in a significant lessening or prevention of competition.
The bureau is an investigative agency, with no adjudicative function. If a civil case proceeds to litigation, the commissioner can apply to a specialized competition tribunal or the courts for a remedy. The commissioner may, at any stage of an inquiry, refer a criminal case to the director of public prosecutions for prosecution in the courts. Criminal cases are typically referred when a commissioner is of the view that the evidence shows that an offence has taken place.
The commissioner of competition may commence an investigation based on information obtained from a variety of sources, including, for example, market observations, in response to formal complaints and as a result of immunity or leniency applications.
The immunity program is one of the bureau's most effective tools for detecting and investigating criminal anti-competitive activities prohibited by the Competition Act. Under the immunity program, the first party to disclose to the Competition Bureau an offence not yet detected or to provide evidence leading to the filing of charges may receive immunity from prosecutions from the Director of Public Prosecutions of Canada, as long as the party cooperates with the bureau.
Under the leniency program, the bureau may recommend to the Director of Public Prosecutions that cooperating persons who have breached the cartel of provisions of the Competition Act—who are not eligible for a grant of immunity—nevertheless be considered for lenient treatment in sentencing.
When the bureau has reason to believe that a contravention of the Competition Act has occurred, the commission can initiate a formal inquiry under section 10 of the Act.
When a formal inquiry has been initiated, the bureau can collect information in a number of ways, either voluntarily or through the use of formal investigative powers granted under the Act and the Criminal Code.
The bureau's philosophy is that most companies in Canada wish to comply with competition law regulations. The bureau recognizes the strong desire to comply and implement compliance promotion, education, information, advocacy, outreach and related programs in order to ensure that companies understand very clearly what is expected of them by the law.
However, if companies with market power engage in anticompetitive activity, we will use the full force of the law to achieve compliance.
The bureau's formal investigative powers under sections 11, 15, and 16 are available for both civil and criminal investigations. In criminal cases, the bureau also has access to additional powers under the Criminal Code.
Under section 11 of the Competition Act, the commissioner may seek court orders to require oral testimony, written returns, or the production of records relevant to the investigation. Under sections 15 and 16, the commissioner may seek orders to search and seize relevant information. In criminal cases, the commissioner may also seek warrants or orders under the Criminal Code to produce information, conduct searches, or undertake wiretaps. The bureau must always seek jurisdictional authorization to use these formal investigative powers.
Thank you.
I would be happy to answer any questions you may have.