DEFINITION of 'Canadian Competition Act'
A federal law that governs business practices in Canada. The Canadian Competition Act includes criminal and civil provisions intended to prevent anti-competitive practices in the marketplace. The Act seeks to:
- Promote the adaptability and efficiency of Canada's economy
- Expand opportunities for participation in worldwide markets
- Create an economic environment in which small and medium-sized enterprises have equitable opportunities
The Canadian Competition Act Provide Canada's consumers with competitive product varieties and prices through such means as monitoring merger and acquisition activity to ensure that any such practices provide an overall benefit to the Canadian economy.
BREAKING DOWN 'Canadian Competition Act'
The Canadian Competition Act is similar to the U.S. Antitrust Law in that they prevent companies from attaining a market monopoly. The Canadian Competition Bureau, an independent law enforcement agency, is the primary agency responsible for the enforcement of the Canadian Competition Act, which provides for the regulation of trade and commerce in regards to trade practices, conspiracies and mergers that affect competition.