July 25, 2007

Steps are being taken

Competition bureau must remain flexible: Scott

By Grant Cameron

managing editor

The pace of change has made life more challenging for Canada’s Competition Bureau but steps are being taken to ensure staff remain up to speed, says commissioner Sheridan Scott.

“This means that we must ensure that the Competition Bureau remains flexible enough to absorb the implications of the changing environment and rigorous enough to determine which changes are meaningful,” she said in a speech recently to delegates at the Canadian Bar Association’s annual conference on competition law.

Scott told delegates it’s an exciting time in Canada’s history because challenges are taking place that will have a significant impact on the economy.

“I believe that the increasingly global nature of our economy, the pace of technological change, and increased reliance on market forces will intensify competition and transform markets.

“Though change is often stressful, it is also an opportunity to learn, improve, build. And that’s exciting. It also happens to be what I’m looking forward to doing as commissioner: learn new ideas, improve our outreach and build our assets as a key player in a dynamic that’s changing faster than you can say VoIP.”

Sheridan Scott

Scott said it’s critical now more than ever, for lawyers and the bureau to work together to ensure a solid marketplace framework in order to have economic growth that includes wealth creation, investment and innovation.

“This is a shared responsibility, one I am sure you embrace with passion.”

At the core of a sound framework is the Competition Act, a key piece of legislation, she said.

“With its emphasis on competition, the Act reinforces the notion that market forces, rather than government intervention, are the best means to deliver benefits to consumers and businesses in our current environment.

“I think that our work at the Competition Bureau and our dialogue with stakeholders will play an essential role in maintaining that focus.”

Scott said the acceleration of technological change and the increased presence of developing economies in the marketplace are having a significant impact on Canada’s economy and on the country’s ability to compete.

“In the future, it is likely that they will have an impact on several business models, allowing new competitors to emerge and causing others to fail.”

Scott said the widespread presence of computers and the related arrival of a transformative technology such as the Internet will inevitably change Canada’s economic context.

As for the impact of emerging economies, one need look no further than China, she said.

“Certainly Napoleon understood the implications of China’s rise on the world stage when he said: ‘When China awakens, the world will tremble.’ Now, nearly 200 years later, China is the top destination for direct foreign investment.”

Scott said that for some sectors of the economy, competitors from developing nations represent genuine threats.

For example, she said, in New York a few weeks ago, the CEO of Cisco Systems, John Chambers, speculated that half of the company’s 12 competitors would come from Asia within five years.

The changes mean that the Competition Bureau must stay on top of technological change, industry trends and consumer and business issues.

“This will be particularly relevant in the case of merger transactions, since our reviews are prospective and require an in-depth understanding of where an industry is heading.

“But it will also be true in the context of our other critical priorities — attacking criminal cartels and fraudulent telemarketing. These activities frequently transcend national borders.

“Clearly, globalization and technological change have increased the complexity of our enforcement work.”

Scott said the bureau is undertaking a number of initiatives designed specifically to boost understanding of how Canadian businesses are dealing with globalization, technology and deregulation.

For example, a series of one-day workshops are being held so staff at the bureau can be briefed by business representatives about the issues and how their business models have changed.

The bureau is also increasing its dialogue with business and the executive committees of several major business associations have agreed to meet on a yearly or twice yearly basis with bureau executives.

This month, Scott will also be hosting a meeting with representatives of consumer associations and various consumer groups to learn more about their role and explain how the bureau works.

Print | Email | Comment