Letters: Communication is Key
May 11, 2024Welcome to Letters from CAMP, a newsletter on anti-monopoly activity in Canada and abroad, brought to you by the Canadian Anti-Monopoly Project. In this installment we have:
Now let’s dive in.
Carney’s Communications Policy Can Be a Tool Against MonopolyAmong its many tasks, the Carney government has a mandate to protect Canada’s independence as a sovereign nation. This week, in a piece for the Wire Report, CAMP executive director Keldon Bester describes how the communications policy of a Carney government can counteract the substantial risks posed by dominant platforms such as Meta and Google, whose control over critical digital infrastructure undermines the future of Canada’s autonomy and national security. What would this mean in practice? First it would mean addressing the unfinished business of the privacy and cybersecurity bills that died on the order paper in the last parliament. It would also mean loudly backing the Competition Bureau in its efforts to ensure even the largest companies on the planet compete fairly in Canada. Going further, it would mean legislation that recognizes Canadians deserve to have a say in the platforms that shape how we communicate, socialize, and participate in the economy. Echoing a similar stance in a recent piece for the Toronto Star, professors Emily Laidlaw and Florian Martin-Bariteau call for digital policy—encompassing robust privacy laws, stringent cybersecurity measures, and thoughtful AI governance—to be central to Carney’s economic and governance agenda. Advocating for proactive data sovereignty measures that limit foreign capacity to manipulate Canadian data and markets, Laidlaw and Martin-Bariteau push to address a key risk of our dependence on foreign digital platforms. The path forward is clear. The Carney government must recognize communications policy as fundamental to Canadian sovereignty, democratic integrity, and economic fairness. 📚 What We’re Reading 📚
Innovators Call on Carney to Commit to CompetitionThe Canadian Council of Innovators (CCI), an association of some of Canada’s most innovative companies, is calling on the Carney government to invest in competition policy. Publishing its far-reaching "Mandate to Innovate" policy report this week, CCI recommends that the Prime Minister’s Office explicitly prioritize competition law enforcement by enhancing the Competition Bureau’s independence, mandate, and resources. To do so, CCI suggests enhancing the enforcer’s funding and making it a freestanding law enforcement agency, breaking it out of its current position within Innovation Science and Economic Development Canada (ISED), the home of the government’s industrial policy making. CAMP supports the recommendation of a more independent and well-resourced Competition Bureau, calling for the same stepped-up investment in competition in the days following the outcome of the federal election. CCI’s recommendations provide a clear, actionable roadmap for the Carney government to take the next step in the evolution of Canada’s competition policy. Adopting these proposals could significantly enhance the Competition Bureau’s contribution to creating a more dynamic and resilient economy that benefits all Canadians, not just entrenched incumbents. Malice in Wonderland: Bureau Sues Theme Park for Deceptive PricingThe Competition Bureau is taking a theme park to court. Canada’s Wonderland, a large theme park in the outskirts of the Greater Toronto Area, is accused of misleading consumers through deceptive "drip pricing" that hides the true cost of a ticket. Wonderland, owned by the U.S.-based Six Flags Entertainment, allegedly advertises ticket prices that exclude mandatory fees, misleading ride lovers about how much a summer day out will really cost them. The case is on theme with the Bureau’s 2024 victory over Cineplex, which resulted in a $39 million fine for similar practices related to the price of movie tickets. In launching the case, Commissioner of Competition Matthew Boswell reiterated the enforcer's stance, that Canadians deserve transparent pricing and fair treatment from all businesses. Whatever the market, from real estate to roller coasters, fair markets depend on honesty and transparency. Cases like these reflect the overlapping nature of consumer protection and competition laws. Hidden fees and opaque pricing erodes consumer trust and punishes competitors that are straightforward with customers in their advertising. The Bureau’s firm action signals a continued commitment to transparency and accountability in markets, reinforcing that fairness is foundational to a thriving, competitive economy. If you have any monopoly tips or stories you'd like to share, drop us a line at hello@antimonopoly.ca
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The Canadian government wanted grocers to keep it up to date on efforts to stabilize food prices. Sobeys and Metro refused
Ricochet Media
Now, as U.S. President Donald Trump’s tariffs take effect, experts warn that grocery prices in Canada could once again spike. It’s worth noting that stabilizing prices won’t undo the price hikes Canadians had already endured, said Keldon Bester from the Canadian Anti-Monopoly Project.
OPINION: What should communications policy look like under a Carney government?
Opinion by CAMP Executive Director, Keldon Bester. With the federal campaign over, effort is shifting from predicting the election’s outcome to what a Liberal government under Mark Carney might actually do. Communications policy is no exception, and absent the more central focus seen in previous elections there is room for speculation.
Read the full article here.
Letters: Doubling Down
May 4, 2024Welcome to Letters from CAMP, a newsletter on anti-monopoly activity in Canada and abroad, brought to you by the Canadian Anti-Monopoly Project. In this installment we have:
Now let’s dive in.
No Retreat: A Carney Government Must Double Down on CompetitionAs Prime Minister Carney prepares to lead a minority Liberal government in Ottawa, Canada is entering a defining moment on competition policy. After two years of reforms aimed at taking on monopolies, there will be strong pressure from entrenched interests to soften the stance. But as CAMP argues this week, a Carney-led government must resist the urge to retreat. Canada’s concentrated economy—from telecom to groceries to banking—has already made life more expensive and less innovative. The solution isn’t more consolidation, it’s more competition. If a Carney government wants to strengthen affordability, sovereignty, and innovation, it should increase enforcement funding, support merger challenges, and bolster policy against gatekeeping behaviour in both digital and traditional industries. This isn’t just about consumers. A growing number of Canadians are shut out of opportunity due to the gatekeeping of dominant firms. Whether it’s banks shutting out non-traditional workers, grocers squeezing suppliers, or tech giants blocking innovators, monopoly power is choking economic dynamism. Instead of watering down competition reforms to placate the powerful, Canada should do the opposite: back the Bureau, fund enforcement, and break open bottlenecks. A pro-competition agenda isn’t some policy side hustle. It’s the backbone of a resilient economy that can adapt to external shocks—whether from Washington tariffs, monopolized digital platforms, or supply chain crises. A Carney government has the opportunity to build on the good work started by the previous government. They should take it. 📚 What We’re Reading 📚
UK Grocers Fight Price War While Canadian Grocers Wrap Themselves in the FlagIn the UK, Sainsbury’s and Tesco are cutting prices in an all-out bid to win over grocery shoppers. Price-matching discount chains like Aldi, slashing margins, and boosting loyalty rewards—it’s a real price war, and it shows what happens when retailers are forced to compete. Compare this with Canada, where grocers are talking a big game when it comes to patriotism but doing little to address sky-high prices. Loblaw and others have leaned into "Buy Canadian" marketing, encouraging consumers to support domestic products while continuing to rake in record profits. We all enjoy seeing more maple leaves around, but patriotic branding is no substitute for real competition. While UK consumers are benefiting from aggressive price competition, Canadian families continue to feel the squeeze. Until Canada’s policy makers act to inject real competition into the food system, Canadians will be stuck paying more for less. It’s time to go beyond flag waving and bring real discipline to a sector that sorely lacks it. Apple’s App Monopoly Cracked Open, But Not for CanadiansIn a major win for developers and consumers, a U.S. judge ruled this week that Apple violated court orders by continuing to stifle competition on its App Store. The case stems from Epic Games' long-running challenge to Apple's 30% fee and rigid payment restrictions on its app store marketplace. Apple had tried to skirt the ruling by introducing a 27% commission on external payments—a move the judge deemed a willful violation. To give a sense of the impact of this monopoly tax on developers, for every $100 spent on the ultra-popular videogame Roblox, app stores make $22 in almost pure profit and the developer loses $35. Thanks to this decision, Apple is now forced to allow developers to direct users to cheaper payment options and third-party stores. This openness is similar to the benefits enjoyed by citizens of the European Union thanks to the Digital Markets Act (DMA). But unless Canada takes action, it’s unlikely any of this relief will reach Canadian developers or users. Without legal or legislative pressure, Apple has no incentive to extend fairer terms north of the border. The remedy is clear: Canada must bring its own antitrust case or adopt a proactive digital markets framework. Otherwise, we risk becoming a digital backwater, locked into the monopolized status quo while others move ahead. If you have any monopoly tips or stories you'd like to share, drop us a line at hello@antimonopoly.ca
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A Carney Government Must Double Down, Not Retreat, on Competition
Last night the looming presence of a Trump administration cast a long shadow over the election that brought in a Liberal government last night. Now that the campaign is over, focus will quickly shift to how a Carney government will handle the threat to Canada’s economy and sovereignty.
Well before the election, whispers began calling for Ottawa to soften its stance on competition policy and to embrace the outdated notion of creating national champions through consolidation as a shield against turbulent times. This would be a grave mistake.
Now, more than ever, robust competition policy isn't a peacetime luxury but a critical tool for navigating economic volatility, safeguarding our economic independence, and building resilience against external shocks. Weakening our resolve on competition would be akin to disarming precisely when the threats are mounting.
Canada has, commendably, made strides on competition in recent years. Federal legislation passed in 2023 and 2024, backed unanimously by all MPs, aimed squarely at tackling the cost-of-living crisis by strengthening the Competition Act. These reforms weren't mere tinkering; they empowered the Competition Bureau to launch meaningful investigations into sectors that profoundly impact Canadians' daily lives – from the grocery aisles and gas pumps to the opaque world of digital advertising. The Bureau's ongoing suit against Google's alleged abuse of dominance in online advertising is a prime example of this renewed vigour, signalling a welcome shift towards tackling bigger monopolies, more frequently.
But, this progress could be fragile as a new government takes the helm. The economic tremors emanating south of the border risk reviving misguided calls to sacrifice competition at the altar of perceived stability. Allowing dominant players to further consolidate in pursuit of elusive scale won't make Canada stronger; it will make our economy more brittle, less innovative, and ultimately more vulnerable. Decades of permitting market concentration have already left Canadians with fewer choices and higher prices in critical sectors like telecommunications, banking, and transportation. We've seen the consequences in everything from cell phone bills to air travel fiascos.
Simultaneously, powerful external forces are pushing back. American tech giants, sensing alignment with a U.S. administration hostile to international regulation – whether it's Europe's Digital Markets Act or core policy areas like taxation – are increasingly assertive. We saw this playbook during the debate over Bill C-18, where Meta blocked news access and Google threatened similar action. These platforms are not just companies; they are integral parts of Canada's economic and communications infrastructure, controlling key gateways for information and commerce.
Ceding ground on regulating their conduct, whether through competition law or other means, isn't just an economic issue – it's a fundamental question of sovereignty. Trading away strong competition enforcement would leave Canadian firms exposed to unfair practices and diminish our capacity to uphold our own laws against powerful foreign entities that operate within our borders. It sends a signal that economic might can override fair play.
The path forward requires doubling down on competition, not retreating. A strong competition policy is a two-pronged weapon: it directly addresses the cost-of-living pressures felt by Canadian households by fostering choice, challenging price-gouging, and preventing dominant firms from extracting excessive profits. It also serves as a bulwark to our economic independence by ensuring a level playing field where Canadian businesses, large and small, aren't stifled or shut out by the anti-competitive tactics of dominant domestic or foreign firms. Competition policy is key to ensuring all corporations compete fairly.
To make this vision a reality, the federal government must take decisive action:
- Back the Bureau: The government must send a clear signal that it supports the Competition Bureau's mandate to challenge anti-competitive conduct, regardless of whether the firm is domestic or foreign. This includes firmly standing behind high stakes, necessary investigations and litigation like the one against Google's dominance in online advertising.
- Invest in Enforcement Capacity: The Competition Bureau needs the resources to match its expanded mandate and the complexity of modern markets, especially digital ones. Despite recent progress, its real funding remains below early 2000s levels. Increasing annual funding from the current $60 million towards $100 million is a necessary investment to enable effective monitoring and enforcement in critical sectors, ensuring the Bureau can act swiftly and effectively, not just reactively.
- Break Economic Bottlenecks: Competition policy is just one ingredient in a more competitive and resilient economy. Across sectors like banking, transportation, and communications, key economic infrastructure is under the control of powerful gatekeepers. The new government should adopt an approach to regulation of federal sectors that transforms these economic bottlenecks into the foundation of a more diverse and dynamic economy while preserving Canadian ownership.
In an era defined by economic uncertainty and geopolitical shifts, retreating on competition policy would be a mistake. It is precisely through a commitment to open, fair, and competitive markets, enforced by a well-resourced and independent regulator, that Canada can bolster its economic resilience, empower its citizens and businesses, and safeguard its sovereignty. The time for half-measures is over; Canada needs a competition policy ready for the challenges ahead.
Letters: Looking for Competition
April 27, 2024Welcome to Letters from CAMP, a newsletter on anti-monopoly activity in Canada and abroad, brought to you by the Canadian Anti-Monopoly Project. In this installment we have:
Now let’s dive in.
Evaluating the Federal Platforms and Their (Lack) of CompetitionAs Canadians head out to vote on Monday, CAMP has assessed the federal party platforms from our single-issue anti-monopoly voter perspective. Unfortunately, the results are not promising. In contrast with the cross-partisan support for strengthening Canada’s competition policy in 2023 and 2024, no national party has competition as a cornerstone of its economic policy commitments. To their credit, the Conservative platform leads with not only mentions of policing unfair competition, but also includes a commitment to engage in an “oligopoly review” of federally regulated sectors and move forward on open banking. Though we can only read so much into two bullet points, both have the potential to be important steps in tackling domestic oligopolies in key sectors. The single mention of the Competition Bureau in the Liberal platform is to bolster the ability to support new Made in Canada requirements for manufacturers. While Liberal leader Mark Carney has made commitments to reduce our dependence on U.S. tech giants, to date these have taken the form of procurement requirements rather than regulation of the behaviour of platforms that control important channels of communication and commerce. The NDP score points with its support for a mandatory grocery code of conduct and support for cooperatives as a competitive alternative in Canada’s food system, but the platform is effectively silent on how an NDP government would defend the interests of Canadians from American firms intertwined with our economy. Competition as a side-show or no-show in platforms is an issue as Canadians face a monopoly threat on two fronts. From abroad, the digital giants that control much of our communications infrastructure are now in the orbit of an American administration looking to strongarm supposed friends and enemies alike. Within our own borders, our homegrown monopolists are rushing to wrap themselves in the flag while continuing to fleece Canadians across the economy. To build a more resilient economy and society, Canada will need to move quickly to tame these monopoly threats. Whatever the outcome of Monday’s election, it’s clear there is work to do to ensure elected policy makers understand the monopoly threat that faces Canadians within and without. 📰 CAMP in the News 📰
Tariffs Mean the Big Will Get BiggerWhile it’s clear businesses around the world are hurting from Trump’s erratic enthusiasm for tariffs, that damage is not spread evenly throughout the economy. In a replay of the COVID-19 pandemic, small businesses are much more exposed to this kind of whiplash economic policy than their monopolist counterparts. Big companies like Walmart, Apple, and Albertsons are using their market power to either dodge tariff costs altogether or shift them onto suppliers. Smaller businesses, without political clout or negotiating leverage, are being crushed by higher input costs and disrupted supply chains. Just as we saw during the pandemic, we should be prepared for firms to exploit tariff-driven uncertainty to pad profits, pushing price hikes onto consumers under the cover of responding to swings in trade policy. Without targeted support for small and medium sized businesses and competition policy to police abuses of market power tariffs will accelerate consolidation and concentration at our expense. During the pandemic, federal policy makers stepped in to stem a wave of bankruptcies arising from the pandemic, but that support was extended to the oligopolies best able to weather the storm on their own. Canada's policymakers must learn from the experience of the early days of the pandemic and design responses that prioritize broad-based economic resilience, not just help the biggest incumbents weather the storm. 📚 What We’re Reading 📚
The Canadian Election Gets Weird On Meta’s PlatformsNew reporting from The Logic reveals a disturbing surge in scam political ads on Facebook ahead of Canada's federal election. With Meta blocking legitimate news under its standoff with the federal government over C-18, disinformation is flooding the platform. Fake news stories, deepfake videos, and doctored images of political leaders are being pumped out by scam networks to mislead voters and promote crypto frauds. Nearly a quarter of Canadians have seen these fake ads, often styled to impersonate CBC, CTV, or other trusted news sources. Despite promises to crack down, Meta’s enforcement remains reactive and ineffective; and because Facebook dominates social media news distribution, there are few alternative venues for real election information to reach users. This chaos shows the dangers of monopoly platforms. When a single company controls critical information flows, its policy choices — or negligence — can have outsized impacts on democracy. Canada's upcoming election highlights the urgent need for stronger competition in digital markets, regulation of critical communication channels, and real consequences for monopolies that fail to meet their responsibilities to the public. If you have any monopoly tips or stories you'd like to share, drop us a line at hello@antimonopoly.ca
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