• Canada has a federal competition act.business man image by peter Hires Images from Fotolia.com
  
  Canada's Competition Bureau is responsible for enforcing the federal Competition Act and regulations. Its purpose is to prevent anti-competitive practices by companies in the marketplace. Specifically, the aim is to promote growth and expansion of the Canadian economy; ensure opportunities exist for foreign companies to do business in Canada; give smaller companies the chance to grow and acquire market share; and make sure companies keep prices fair.
  
  

Abuse of Market

• Competition regulations are there to ensure that one company does not exert its power by controlling everything. There are certain criteria that must be met to signify an abuse of market position. According to the Competition Bureau, if a dominant company set prices above a competitive level; its business practices are deemed to reduce competition, such as buying up a competitor's suppliers; or anti-competitive acts are lessening or could lesson competition.
  
  

Restrictions

• Section 77 of the act states that restrictive practices, such as a supplier forcing a customer to deal only in certain products (exclusive dealing); a supplier, as a condition of supplying a product, forces a customer to buy a second product (tied selling); and a supplier requires a customer to sell a specific product in a defined market (market restrictions) are business practices that competition regulations try to prevent.
  
  

Pricing

• Section 76 of the act addresses pricing. The Competition Bureau advises that when a supplier prevents a customer from selling a product below a minimum price with threats, or discriminates against them because of their low pricing, they could be in violation of competition regulations. Ultimately, a company's pricing policy should not have an adverse effect on competition.