Review of Industrial Organization
13: 177–204, 1998.
1998 Kluwer Academic Publishers. Printed in the Netherlands.
Competition Policy and Regulatory Reform in
ROBERT D. ANDERSON
World Trade Organization, Competition Policy, Geneva, Switzerland
University of Montreal, Centre de Recherche sur les Transports, Montreal, Quebec, Canada
Competition Bureau, Industry, Hull, Quebec, Canada
W. T. STANBURY
Faculty of Commerce and Business Administration, University of British Columbia, Vancouver, BC,
The past decade has witnessed an unprecedented expansion in the role of compe-
tition policy as a dimension of national economic policy in Canada.
several underlying developments. First, the 1986 amendments to the Competition
Act (previously the Combines Investigation Act) substantially strengthened the leg-
islation, particularly in the areas of mergers and abuse of a dominant position.
Second, the amendments explicitly broadened the scope and coverage of the Act
to encompass the banking sector as well as Crown (i.e., government-owned) cor-
porations that are engaged in commercial enterprise in competition with private
An additional major factor underlying the expanding role of competition policy
in Canada has been the progressive removal of industry-speciﬁc price and entry
Paper prepared for publication in a special issue of the Review of Industrial Organization to
commemorate the Tenth Anniversary of Canada’s 1986 Competition Act. The authors gratefully
acknowledge helpful comments and suggestions provided by David McAllister and other participants
at a Symposium sponsored by the Canadian Competition Bureau in May 1996, as well as by the
referees. The views expressed are the authors’ and not necessarily those of any organizations with
which they are afﬁliated.
See Robert D. Anderson and S. Dev Khosla, Competition Policy as a Dimension of Economic
Policy: A Comparative Perspective (Ottawa: Industry Canada Occasional Paper No. 7, May 1995).
See Christopher Maule and Thomas W. Ross, “Canada’s New Competition Policy”,The George
Washington Journal of International Law and Economics, Vol. 23, 1989, pp. 59–109; and W. T. Stan-
bury, ‘The New Competition Act and Competition Tribunal Act: Not With a Bang But a Whimper”,
Canadian Business Law Journal, Vol. 12, 1986, pp. 2–42.
See the Competition Act, R.S. 1985, c. C-34, Section 49 and Section 2.1.