Merger Efficiencies in Canada

Abstract

In terms of solidifying the economic foundations of competition policy, Canadian merger law is much further advanced than merger law in any other jurisdiction. This article evaluates the developments in the Canadian law and draws both positive and negative lessons for integrating economic principles into merger law generally. The balancing weights test adopted in Canadian law for incorporating efficiencies into merger assessment has firm support in economics. But the implementation of this test has run into problems. A sharp wedge remains in Canada between the law and the economics of merger evaluation.