On November 27, 2020, the Canadian Competition Bureau released a statement regarding the application of the Competition Act to no-poaching, wage-fixing, and other buy-side agreements. Canadian legal and business communities have become increasingly interested in these issues since at least 2016, when American regulators indicated that buy-side agreements could attract criminal liability.
With this statement, the Bureau clarified how it will address buy-side agreements such as no-poaching or wage-fixing agreements and confirms that Canadian and American antitrust laws will treat them quite differently, according to Borden Ladner Gervais.
Buy-side agreements not to hire employees away from competitors (no-poaching agreements) or agreements that set wages at a specific lower level or range (wage-fixing agreements) may have anti-competitive effects in the labor and related product markets, according to the statement. However, the Bureau will not consider buy-side agreements for the purchase of products and services – including employee no-poaching and wage-fixing agreements – under the criminal conspiracy and agreements regime outlined in section 45 of the Competition Act.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI