Competition Act: Antitrust compliance essentials

In brief:

• – After several rounds of amendments to the Competition Act of Canada, it now specifically targets deceptive marketing practices like drip pricing, plus fines for anti-competitive conduct have significantly increased
• – The Competition Act of Canada is designed to be a competition guardian, maintaining fair markets and providing the necessary innovation incentives for the Canadian economy to thrive
• – Moving from ad-hoc checks to enterprise surveillance tools as part of an antitrust compliance strategy is now necessary to ensure organizations adhere to price-fixing rules, among other requirements

What are the latest 2025 Bureau crackdowns on digital cartels?

2025 was defined by a sharp increase in Competition Bureau enforcement activity, particularly in the realm of digital agreements.

Recent crackdowns have targeted “digital cartels” where competitors use algorithms or shared platforms to manipulate market conditions. Under sections 45 through 49 of the Competition Act in Canada, these are treated with extreme severity.

The escalation of fines is a most alarming trend. In the past, penalties might have been regarded as a minor inconvenience. But that’s now changed.

Recent developments show a definite move toward record-breaking financial punishments intended to deter even the largest market players from deceptive marketing and breaking price-fixing rules. 

The case of the Commissioner of Competition vs. Google Canada Corporation and Google LLC is the perfect example of just how severe these monetary penalties can be.

In 2013, the maximum fine increased, so that firms found guilty could be ordered to pay the amount equal to three times the value of the benefit derived from the anti-competitive practices. Or if that amount cannot be reasonably determined, 3% of that firm’s worldwide gross revenues.

For Google, this could mean a whopping penalty of $10.5 billion based on its 2024 global revenues.

Which activities does the Competition Act of Canada prohibit?

Understanding the core prohibitions is the first step in building a robust antitrust compliance program. The Act focuses on three specific areas:

1. 1. Criminal conspiracies (known as cartels)
2. 2. Merger reviews
3. 3. Deceptive marketing

Cartel bans: It is illegal to agree with competitors to fix prices, restrict production, or divide up customers. These price-fixing rules apply regardless of whether the agreement was formal or just a “nod and a wink” over email.

Merger notifications: Large transactions must be reported to the Bureau before they close. This more rigorous scrutiny of mergers ensures the Bureau can review whether the deal would significantly decrease competition.

Deceptive marketing: This covers false or misleading representations. In the 2022 amendments, drip pricing is explicitly recognized as a harmful business practice. This is where companies advertise a low price but add mandatory fees during the checkout process, making the original price unattainable.

What are the most common compliance pitfalls for businesses?

Even companies with honest intentions can stumble into Competition Act bid-rigging risks or other legal traps inadvertently.

One of the most frequent issues is “gun-jumping” during a merger. This happens when two companies start acting as a single entity by sharing sensitive pricing data or coordinating sales strategies, for example, before they have legal clearance to merge.

But there are several other common pitfalls, which include:

• – Email collusion risks: Employees often discuss market trends with peers at other companies. Without proper training, a simple email about “keeping prices stable” can be used as evidence of a criminal conspiracy.
• – Affiliate blind spots: Companies are often held responsible for the actions of their affiliates or third-party sales teams who may engage in deceptive marketing without the parent company’s knowledge.
• – Ad-hoc monitoring: Relying on occasional manual reviews leaves gaps in your defense. Automated surveillance tools are more reliable and efficient, providing far greater protection for your organization.

Which tools for Act audits should my company use?

To counter these risks, a robust antitrust compliance strategy, comprising Competition Act training best practices and enterprise surveillance tools is the best line of defense against Competition Bureau enforcement.

Competition Act guide 2025

A structured 120-day compliance rollout that includes developing “dawn raid” response kits can have a significant impact on your organization’s readiness for a Competition Act audit. This may include creating manuals that tell staff exactly how to behave if Bureau investigators arrive with a search warrant.

Modern tools for Competition Act audits allow compliance officers to scan high volumes of data for red flags. Rather than waiting for a whistleblower, these systems alert you to problems in real-time and reduce the risk of costly enforcement.

The key features of an enterprise surveillance programme include:

1. 1. Keyword alerts: Automated systems scan emails and chat logs for risky terms like “market share,” “standardize,” or “no-poach”
2. 2. Deal logs: Detailed records of all competitor interactions help justify business decisions during a Bureau audit
3. 3. Automated pricing scans: These tools monitor your own pricing changes against the market to ensure your sales team isn’t inadvertently following a competitor’s lead in a way that looks like price-fixing
   
   

When it comes to enterprise surveillance, effective monitoring underpinned by robust record-keeping requires a transition from a reactive to a proactive approach.

Amid growing use of social media and other ‘off-channel’ communications methods, firms in North America are increasingly turning to message capturing services, as outlined in Global Relay’s Communication Capture Trends Report 2025/26.

While ad-hoc reviews might catch the most obvious errors, enterprise-grade surveillance provides a much higher level of protection that’s also sustainable. Employee-led monitoring can leave serious gaps, increasing your organization’s risk exposure.

That’s where a specialized antitrust message capture product that integrates directly into your existing communication platforms really comes into its own. An AI-enabled solution captures data from any source, accurately identifying risks via continuous monitoring to spot threats like Act abuse of dominance risks or pricing conspiracies before they lead to an investigation.

FAQ: Competition Act for corporations

What are the notification thresholds for mergers?

Under the merger notifications rules, transactions must be reported if the target’s assets in Canada or gross revenues from sales in or from Canada exceed specific financial limits, which are adjusted annually.

How does the Bureau define “drip pricing”?

The 2022 amendments clarify that drip pricing occurs when a price is advertised that is unattainable because the seller adds fixed, mandatory fees later in the transaction. This is a major focus for Competition Bureau enforcement in the retail and travel sectors.

What is a “dawn raid” response kit?

This is a set of protocols and legal contacts that employees use if the Bureau executes a search warrant at your office. It ensures that the company protects its legal rights while remaining cooperative with authorities.

Final thoughts

The Competition Act of Canada is a robust framework of requirements that ensures a fair market for all participants.

Actively supporting this vital piece of legislation by investing in antitrust compliance helps protect your organization from the devastating financial and reputational damage of an enforcement action.

Plus, implementing specialized tools for Act audits and a structured training program will put your company ahead of the curve.

Global Relay’s industry-leading antitrust message capture service helps safeguard your organization by detecting potential misconduct and compliance risks across all your communication channels while filtering out the noise.