Canada Government Plans Hawkish Competition Policy to Restore Affordability

Canada's Industry Minister Mélanie Joly announced that the government will adopt a hawkish stance on competition to address the rising cost of living and improve affordability for Canadians. Speaking at the Competition Bureau's annual summit, Joly emphasized that expanding competition in sectors like telecom and lending would provide consumers with more choices and lower prices. Competition Commissioner Matthew Boswell highlighted that stronger domestic competition is essential for Canadian companies to compete globally, warning that shielding firms from competition leads to complacency. The Competition Bureau has investigated industry concentration in groceries and airlines, noting that increased competition can significantly reduce prices, such as a 9% drop in airfares when a new carrier enters a route. However, challenges remain due to regulatory burdens and high startup costs, which Statistics Canada linked to declines in business dynamism and GDP growth. Experts like fintech CEO Andrew Graham stress the importance of fostering Canadian-headquartered companies to drive economic growth and global competitiveness, rather than merely attracting foreign operations.