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Superior Propane: The Case That Broke The Law


Area Competition, Antitrust and Foreign Investment


Article orginally published in Global Competition Review, Volume 6, Issue 9, October 2003 (Reprinted with Permission)

Excerpt from "Superior Propane: The Case That Broke The Law":

The Competition Act of Canada contains a unique provision. Section 96(1) of the Act elevates efficiencies derived from a merger to the point that, if gains in efficiency “will be greater than, and will offset, the effects of any prevention or lessening of competition that will result”, then the merger must be allowed. The Canadian experience in elevating efficiencies to a level which outranks anti-competitiveness has been confused, costly, and proven ultimately unacceptable. If the Canadian experience is to be taken as an example, those who would make efficiency the ultimate objective of a competition law regime would be wise to be warned. 

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