2025 Competition Act Amendments: The Future of Canadian Competition Law

Written By: Ashaz Syed Hussaini

Legal Terms

1. Mergers: when official groups (ex. corporation/association) merge and succeed another.

2. Competition Bureau: a law enforcement agency that protects competition in Canada.

3. Efficiencies Defense: justifying anti-competitive conduct with economic benefits/efficiency.

4. Competition Tribunal: adjudicates Canadian competition law disputes independently.

5. Investment Canada Act: reviews foreign investments for economic and security benefits.

6. Greenwashing: involves misleading claims about environmental or social credentials.

7. Litigation: the procedure, act, or custom of resolving a disagreement in a court of law.

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Brief

In this article, I will explore the 2025 amendments to Canada’s Competition Act and what they mean for Canadians. The changes aim to modernize competition law and tackle anti-competitive practices, with significant implications for our businesses, consumers, and the future of Canada’s legal system.

What is Competition Law?

Competition law is a branch of law designed to promote fair competition in the marketplace by preventing practices such as price-fixing, monopolies, and abuse of market dominance. 

What is the Competition Act?

The Competition Act is Canada’s primary legislation regulating competition. It prohibits anti-competitive practices such as price-fixing, deceptive marketing, and mergers that harm market competition. Enforced by the Competition Bureau, the Act empowers authorities to review mergers, impose penalties, and ensure compliance through legal actions. It also provides mechanisms for private parties to challenge anti-competitive behaviour, allowing for a fair and innovative marketplace.

Upcoming Amendments

The repeal of the efficiencies defense will eliminate the ability to justify anti-competitive mergers based on economic efficiencies, ensuring mergers are assessed purely on their impact on competition. Aside from that, the Act will expand private rights of action, allowing individuals and businesses to seek monetary relief for anti-competitive practices through the Competition Tribunal.

Stricter penalties for abuse of market dominance will now include fines of up to $10 million, which shows the government’s commitment to deterring harmful practices. Enhanced merger control provisions will introduce new presumptions of anti-competitive harm based on market concentration thresholds, making it harder for dominant players to stifle competition.

Businesses will also face a mandatory national security review for pre-closing foreign investments in sensitive sectors under the Investment Canada Act—which makes it clear that national security has been brought back to the forefront of consideration in economic decisions. To combat deceptive marketing, stricter requirements for environmental claims will be implemented as well, targeting greenwashing practices. In the same vein, the amendments will bolster whistleblower protections to encourage reporting of anti-competitive behaviour.

Implications for Canadians

I would think expanded private rights of action are likely to increase litigation, as more cases are brought before the Competition Tribunal. This shift could empower businesses and consumers to take an active role in challenging anti-competitive practices, but it also raises litigation risks for companies.

I view the stricter compliance measures required by these changes as an indication that businesses will need to invest more in ensuring they follow the rules—specifically in areas like environmental claims and market dominance. For foreign investors, I believe the mandatory national security review could act as a deterrent, but it also shows potential for Canada’s focus on protecting its economic and security interests in 2025.

For consumers, I would argue things improve all around considering these updates promise

better protection from deceptive marketing and unfair business practices. I expect the removal of the efficiencies defense and enhanced merger controls to foster more competitive markets—this is ultimately Canada’s goal, which is eventual innovation, lower prices, and increased consumer choice. 

All in all, while there may be foreign-related hiccups, I observe these amendments to represent a significant step forward in modernizing Canada’s competition law to meet the challenges of a rapidly evolving global economy.

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Document with citations can be found here: https://docs.google.com/document/d/14I4onLcoubw6H14MuOpji5cs4rTw7FyB5wn0M0OjlRk/edit?usp=sharing