Re: Strengthening Competition in the Financial Sector Key Questions for Consideration

We answer the “key questions for consideration” set out in the consultation and our comments focus on the application of the Competition Act to mergers and acquisitions (M&A) in the banking sector. [...] If the Competition Bureau were to identify competition law concerns in an M&A transaction, the Competition Act gives the Competition Tribunal broad remedial powers to address access or other substantive issues identified by the Bureau in its reviews. [...] What new considerations should be included in a review of a merger or acquisition under the Bank Act? While the CBA Competition Law and Foreign Investment Review Section does not have views on Bank Act-related matters, it is worth noting that the Competition Act was recently amended to remove the efficiencies defence and to explicitly permit the Competition Bureau and Competition Tribunal to consi. [...] Given the removal of the efficiencies defence in the Competition Act, we encourage the government to consider the role of efficiencies considerations in the Bank Act (e.g., as a factor in any public interest assessment decision-making). [...] The predecessor provisions in the Competition Act can (and have been) used to ensure fair competition in the FI industry (e.g., the “Interac” case mandating fair access to the Interac system).