Nine years after opening an investigation into how Canadian food companies colluded to fix bread prices, the competition commissioner is warning that the government’s competition laws are out of date and enforcement is weak.
“The problem of concentration in this country is getting worse. It has gotten a lot worse over the last generation and it’s something that all of us as people who are passionate about our country and our economy and policy need to address,” testified Competition Commissioner Matthew Boswell at the Senate National Finance Committee on Dec. 13.
In June, Canada Bread agreed to pay $50 million after conspiring with Weston Foods executives to increase bread prices in 2007 and 2011. At that time, Weston Foods was a subsidiary of George Weston Ltd., the parent company of grocery chain Loblaws, and Canada Bread was owned and controlled by Maple Leaf Foods.
The investigation is ongoing, and 17 search warrants have been served to date, according to Blacklock’s Reporter.
“I understand why people are concerned. It’s a significant endeavour. I understand people are concerned that we’re still investigating but it’s a large, complex investigation,” Mr. Boswell said.
He told the committee that Canada Bread was ordered to pay the largest fine in Canadian history for price fixing.
The price-fixing scheme was worth up to $5 billion according to court records, Blacklock’s said.
Mr. Boswell said Canada scores poorly when it comes to anti-trust measures, as competition has experienced “atrophy” in the last few decades. He said Canada’s Competition Law has been “weak” since 1986, with policies and approaches that are “out of line with the rest of the world and a weak enforcement.”
