[4][5] Critics of the bill note that competition policy is unlikely to be helpful in reducing price inflation in the grocery sector, as studies indicate it is a low-margin industry that has been hit by recent adverse macroeconomic shocks.
[7][4] A press release from Canadian Prime Minister Justin Trudeau's office on 14 September 2023 said the government "will incentivize the construction of much-needed rental homes".
"[8] Finance Minister Chrystia Freeland said the bill includes "historic" changes to the way competition law works in Canada which, she argued, could have a meaningful impact on grocery prices.
[3] Second, the bill proposes three competition-related changes: (1) the Competition Bureau would be able to seek a court order to compel parties to produce information (such as business records or sworn testimony) for a market study.
[7] Ontario, British Columbia and Newfoundland and Labrador said they will eliminate provincial sales tax on new rental construction, but Quebec will not, saying it would be too costly.
[14] The president of the GTA's Building Industry and Land Development Association said the tax was "a barrier for purpose-built rentals" and its removal "is a really significant step.
[4] An inability to compel documents from subjects as part of its market studies was cited as a barrier to the Competition Bureau's investigation of concentration in the grocery sector earlier in 2023.
[2] However, mandatory participation in market studies has raised concerns about "politically-motivated fishing expeditions" against parties who would not be alleged to have contravened the Competition Act (although the requirement of a court order to compel information may mitigate this risk).
[6] In June 2023 the Competition Bureau found the grocery industry was a low-margin business and a modest increase to low margins cannot explain the double-digit food price inflation in Canada.
[6] Similarly, an August 2023 Bank of Canada study found no support for the view that inflation is driven by firms exercising market power to increase prices through higher markups.
[6] Osborne notes that if grocery store chains enjoyed enough market power to drive prices higher they would not have waited for the pandemic or the Russian invasion of Ukraine.