The Canadian Federal Court of Appeal ruled that the Competition Tribunal had made an error in law in applying paragraphs 79(1)(b) and 79(1)(c) of the Competition Act and defined, for the first time, the meaning and framework of abuse of dominance provisions (Canada Pipe)

Facts Canada Pipe Company Co., acting through its division Bibby Ste-Croix, offered distributors a loyalty rebate program so called the “stocking distributor program” (SDP) under which Canada Pipe gave significant rebates and discounts to distributors that purchase all of their requirements for cast-iron pipe, cast-iron fittings and mechanical joint couplings (“drain, waste and vent” or DWV products) exclusively from Canada Pipe. These distributors were free to stock other companies' DWV products which were not made of cast iron. Procedure In October 2002, the Commissioner of competition (“the Commissioner”) challenges the legality of the SDP by seeking an order for its elimination as an infringement of the exclusive dealing (s. 77) and abuse of dominance (s. 79) provisions of the

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Karounga Diawara, The Canadian Federal Court of Appeal ruled that the Competition Tribunal had made an error in law in applying paragraphs 79(1)(b) and 79(1)(c) of the Competition Act and defined, for the first time, the meaning and framework of abuse of dominance provisions (Canada Pipe), 23 June 2006, e-Competitions Bulletin Exclusive distribution, Art. N° 28021

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