Competition Policy Review Panel Research Paper Summary (Page 3 of 3) in pdf

Competition Policy Review Panel Research Paper Summary Page 3

This document is a summary of research commissioned for use by the Competition Policy Review

Panel. The reports remain the responsibility of the individual researcher(s). The views expressed

do not necessarily reflect those of the Panel or the Secretariat.

across jurisdictions, which may be to the detriment of countries whose particular

characteristics, are unlike those faced by large, standard-setting jurisdictions. As

a small and open economy, Canada applies an efficiency-defense law under the

Competition Act using the balancing weight approach as a formal standard to

incorporate efficiencies in merger reviews. When pursuing the efficiency defense,

Competition authorities should not only consider the costs associated with such a

defense but also evaluate whether competitive actions could bring the same

efficiencies without the merger. Another potential challenge is that merger

transactions in a global economy may require balancing the interests of domestic

consumers against those of foreign shareholders, or vice-versa; this will have

ramifications on the treatment of efficiencies and the appropriate weighting of

consumer and shareholder interests.

Competition Policy Review Panel Research Paper Summary Page 3