Competition Bureau Concludes Inquiry into Snow Crab Processing in Newfoundland and Labrador

OTTAWA, December 17, 2004 – After a detailed examination of the snow crab market in Newfoundland and Labrador, the Competition Bureau has found that fish processors did not violate the conspiracy provision of the Competition Act in the purchase of snow crab during the 1994 to 2002 fishing seasons.

Following complaints received in August 2001, the Competition Bureau started an inquiry into allegations that, throughout this eight-year period, a number of fish processors in Newfoundland and Labrador conspired to fix or eliminate bonus payments made to fish harvesters for snow crab and allocated snow crab quota among themselves. Bonus payments refer to payments made by fish processors to fish harvesters in addition to the minimum price for snow crab that is established under the provincial Fishing Industry Collective Bargaining Act.

The Bureau concluded that the fish processors did not have sufficient control over the market to implement an agreement that would unduly lessen competition and that there was competition among fish processors in the purchase of snow crab, including the payment of bonuses. Excess processing capacity in the industry was a contributing factor to competition between fish processors to buy and maintain their supply of the limited amount of available snow crab.

The allegations were reviewed under the conspiracy provision, section 45, of the Competition Act. This section has two elements that must be satisfied in order for there to be an offence. The evidence must show that there was an agreement between the fish processors in question, and the agreement, if implemented, would unduly lessen competition in the purchase of snow crab in Newfoundland and Labrador.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

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Tim Weil
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(819) 953-9271

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Competition Bureau
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