Practical Law Canada Competition, of which I am Lawyer Editor, published a new Legal Update that discusses the Competition Bureau’s (Bureau) recent Competition and Green Growth Summit that was held on September 20, 2022. The Update discusses key aspects of the Commissioner of Competition’s remarks, some of the key recommendations made by Summit panelists, recent Bureau green economy related enforcement and implications.
Below is an extract of the new Legal Update with a link to the full Update.
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On September 20, 2022, the Competition Bureau (Bureau), in collaboration with expert panelists from government, business, academia and think tanks, held its Competition and Green Growth Summit (Summit) to examine the interaction of competition law, policy and the green economy. The panelists included senior officials from the United States Department of Justice and Federal Trade Commission, the United Kingdom’s Competition and Markets Authority and a European Union delegation, as well as other government agencies.
During the Summit, panelists discussed the role of competition to achieve the government’s green economy related growth goals and enhance Canada’s global competitiveness; the role of competition enforcement in the transition to a greener economy; and the practical aspects of environmental considerations in competition enforcement, among other things.
Commissioner of Competition and Panelists’ Remarks
According to the Commissioner of Competition, Matthew Boswell: “climate change may be the greatest market failure we have faced” and “competition underpins a dynamic and adaptable economy responding to climate change.” In this regard, the Bureau’s view is that competition law and the green economy intersect in at least three important ways (see Competition Bureau, News Release, Competing for Green Growth (September 20, 2022)).
First, competition law maintains consumer confidence in the green economy by protecting consumers against false or misleading environmental claims, which is commonly referred to as greenwashing. This ultimately helps us to transition to a greener economy by helping consumers make informed decisions and rewarding businesses that innovate and compete fairly. For more information about false and misleading advertising and environmental claims under the Competition Act, see Practice Notes:
- Misleading Environmental (Green) Claims.
- Misleading Advertising Under the Competition Act.
- Performance Claims Under the Competition Act.
Second, competition law protects the market and the environment against anti-competitive conduct, including horizontal agreements (that is, conspiracy agreements), mergers and monopolistic practices. These agreements could, for example, make environmental products and services more expensive and less innovative. For more information about conspiracy and abuse of dominance under the Competition Act, see Practice Notes, Abuse of Dominance (Sections 78 and 79 of the Competition Act) and Canadian Conspiracy (Cartel) Law.
Finally, according to the Commissioner, competition law and policy should, as part of the broader regulatory environment, promote competition by fostering legitimate collaboration between businesses to deliver goods and services in more sustainable ways, among other things.
According to several panelists, antitrust enforcement agencies should be particularly mindful of anti-competitive practices related to greenwashing, abuse of dominance, mergers, and collusion (cartels) in the green economy.
Some panelists cautioned, however, that overly strict competition enforcement may deter businesses from sharing information that may otherwise foster innovation and competition in the green economy and that legislators should consider creating an exception for collaboration between competitors for environmental protection purposes. For more information about information exchanges and joint ventures between competitors under the Competition Act, see Practice Notes:
- Cooperating with Competitors: Business Briefing.
- Establishing and Avoiding a Conspiracy Agreement.
- Information Exchanges Between Competitors.
See also, Cooperating with Competitors Checklist and Factors to Assess the Competition Law Risk of Information Exchanges.
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For the full Legal Update, see here.
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