Competition Law in Canada

Private lawsuits have long played a significant role in the enforcement of antitrust legislation in the US. Although competition legislation in Canada dates back to 1889, it was only in 1976 that Canada introduced a civil cause of action for breaches of its antitrust laws. Considerable doubt as to the constitutional validity of the Canadian provision has resulted in only a handful of cases. However, in a unanimous judgment released on April 20, 1989, the Supreme Court of Canada found that the section was a valid exercise of federal power. Unlike the US rules, the Combines Investigation Act only provides compensation for loss, and suggestions that double or treble damages be provided were rejected by the government. The Court, having referred to the US experience in this area as evidence of the role a private action could play in deterring anticompetitive behavior, concluded that, notwithstanding the intrusion into provincial competence, the civil right of action in the Act should stand.