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[2011] 3 F.C.R. D-10

Competition

Appeal from Competition Tribunal decision (2009 Comp. Trib. 6) dismissing application to issue supply order pursuant to Competition Act, R.S.C., 1985, c. C-34, s. 75(1)—Appellant chicken slaughtering business—Following breakdown of negotiations to purchase appellant’s assets, respondents advising appellant of intent to cease supplying live chickens to appellant—Appellant not meeting all conditions set out in s. 75(1)—Tribunal finding that live chickens not available in ample supply pursuant to s. 75(1)(d), respondents’ refusal to deal with appellant not changing amount of chickens available to downstream market, not having adverse effect on competition in market pursuant to s. 75(1)(e)—Tribunal not erring in law in defining “ample supply”—However, test to be formulated based on what constitutes ample supply, not on what does not constitute ample supply—Product available in ample supply when producers having capacity to increase production in timely way to meet increases in demand for product—In case herein, in context of poultry supply management system, quotas based on consumer demand, not processor demand—Market in which increased demand for product accommodated only by diverting supplies from one customer to another not market in which relevant product in ample supply—Regarding condition at s. 75(1)(e), Tribunal not erring in law in considering only “downstream” market, or market into which appellant selling its product—Reference to “a” market in s. 75(1)(e) reference to any relevant market of product or any geographical market where complainant selling its product—S. 75(1)(a),(b) addressing issues of complainant’s supply, therefore referring to upstream market—Act redundant if requiring appellant to show further distortion of upstream market for live chickens—Requirement that complainant show adverse effect in market designed to avoid private prosecutions based on injury to individual market participant without impact on relevant markets—Appeal dismissed.

Nadeau Poultry Farm Ltd. v. Groupe Westco Inc. (A-342-09, 2011 FCA 188, Pelletier J.A., judgment dated June 2, 2011, 44 p.)

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