The Canadian Competition Tribunal holds that the exit of a dominant firm from the relevant market does not end an abuse of dominance claim (Direct Energy)

Not out of hot water: Direct Energy’s exit does not end abuse case* Direct Energy’s exit from the hot water heater rental market did not turn down the heat from the Commissioner The exit of a respondent in an abuse of dominance case does not mean the case cannot continue, the Competition Tribunal held recently. In 2012, the Commissioner of Competition launched abuse of dominance applications against two residential hot water heater rental companies, Direct Energy and Reliance Comfort Partnership. The Commissioner alleged that the two companies used a variety of tactic designed to make it difficult for consumers to switch to a hot water heater from a competitor. 2014 saw major changes to the hot water heater market.

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Michael Osborne, The Canadian Competition Tribunal holds that the exit of a dominant firm from the relevant market does not end an abuse of dominance claim (Direct Energy), 26 March 2015, e-Competitions Bulletin March 2015, Art. N° 72687

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