Canada’s Antitrust Future: Why Following the US Lead on Amazon Could Be Smarter Than Starting From Scratch
Nearly 70% of Canadian online shoppers begin their product searches directly on Amazon. This dominance isn’t just a convenience; it’s a potential chokehold on competition, and a growing number of experts believe Canada’s Competition Bureau should learn from ongoing antitrust battles south of the border rather than reinvent the wheel.
The Case for ‘Piggybacking’ on US Antitrust Efforts
The idea of relying on the findings and legal strategies developed in US antitrust cases against Amazon might initially seem…lazy. However, a deeper look reveals a pragmatic approach. Replicating complex investigations – gathering data, building legal arguments, and dedicating significant resources – is incredibly costly and time-consuming. The US Department of Justice’s lawsuit, alleging Amazon illegally maintains monopoly power, is already doing much of the heavy lifting. Canada’s Competition Bureau could strategically leverage this work, adapting it to the Canadian market rather than starting from zero.
Why Canadian Investigations Often Lag
Canada’s competition law enforcement historically faces challenges in keeping pace with the rapid innovation and global reach of tech giants. Smaller budgets, a more cautious legal approach, and the sheer scale of data required for these investigations contribute to this lag. As legal scholar Walid Hejazi notes in a recent paper on digital competition policy, “Canada often finds itself reacting to anti-competitive practices *after* they’ve become deeply entrenched.” (Source: C.D. Howe Institute)
The Benefits of a Coordinated Approach
A coordinated approach – or, at the very least, close monitoring of US proceedings – offers several advantages. Firstly, it allows the Bureau to focus its limited resources on specific areas of concern unique to the Canadian market, such as the impact on Canadian businesses or regional pricing disparities. Secondly, a unified front with the US could exert greater pressure on Amazon to implement company-wide changes that benefit consumers and sellers in both countries. This is particularly relevant given Amazon’s integrated North American marketplace.
Beyond Amazon: The Broader Implications for Digital Competition
This isn’t just about Amazon. The principle of leveraging international investigations applies to other tech giants as well. The European Union’s Digital Markets Act (DMA), for example, is setting a new global standard for regulating large online platforms. Canada can learn from the DMA’s successes and failures, adapting its own policies accordingly. The key is to avoid duplication of effort and focus on enforcing competition law effectively.
The Rise of ‘Follow-On’ Cases
We’re likely to see a growing trend of “follow-on” cases – legal actions in one jurisdiction based on findings from another. This is particularly true in the digital realm, where anti-competitive practices often transcend national borders. The US case against Amazon could pave the way for similar actions in Canada, Australia, and Europe. This creates a powerful incentive for companies to comply with competition laws globally.
Data Portability and Interoperability: Key Battlegrounds
Looking ahead, two key areas will likely dominate the digital competition landscape: data portability and interoperability. Data portability – the ability for consumers to easily transfer their data between platforms – and interoperability – the ability for different platforms to work together seamlessly – are crucial for fostering competition and innovation. Canada needs to develop clear rules in these areas, potentially drawing inspiration from the EU’s DMA.
The future of Canadian antitrust enforcement isn’t about reinventing the wheel; it’s about strategically leveraging the work of others and focusing on what matters most: protecting consumers and fostering a competitive digital marketplace. What are your predictions for the future of digital competition in Canada? Share your thoughts in the comments below!
