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Canada’s economy has less competition than it used to, agency tasked with fixing it finds in new report

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The federal agency in charge of ensuring there’s healthy competition between companies in Canada says there’s less of it than there used to be.

That’s the main takeaway from a new report by Canada’s Competition Bureau, published Thursday, which tracked competition in various parts of Canada’s economy and how it changed between the years 2000 and 2020.

By looking at granular data on profits, business creation and other metrics from Statistics Canada and various other government departments, the report found that overall Canada’s “competitive intensity” — the level to which firms compete with each other to win consumer dollars — has fallen over the years.

That means that instead of getting more competition, industries that were highly concentrated in 2000 were even more concentrated, in fewer hands, by 2020, the report found. And the number of industries deemed to be highly concentrated went up, too.

Rich getting richer

The biggest companies are being even less challenged by smaller new entrants than they used to be, and even the number of new entrants into industries overall has declined.

The rich are getting richer, too, as the report found that profits and markups have both risen over the past 20 years — especially at companies that were already highly profitable in the first place.

“The result of this decline in competitive intensity is that both consumers and businesses have seen fewer of the benefits that a more competitive economy has to offer, such as lower prices, greater choice and more innovation,” the bureau said in a statement.

 

Calls for more competition to combat soaring grocery prices

 

Featured VideoA new report says there’s a lack of competition in the grocery business — and consumers are paying the price. Right now, there are just five big players dominating the market in Canada.

While the report was short on concrete details as to how to fix the problem and reverse the trend, in broad terms the bureau said that what’s needed most is a “whole-of-government approach” to foster competition. And an overhaul of competition laws that would allow the bureau to do more to help.

That’s something the bureau has asked for before, most recently in a report on Canada’s grocery industry, which found that overall the sector is not as competitive as it could be, and consumers pay higher prices as a result.

Among the legislative changes the bureau has asked for previously is the ability to compel companies to provide inside information when requested. Currently the system is mostly voluntary.

The bureau has also asked that Canada’s Competition Act be overhauled in a way that would focus more on what’s good for consumers, as opposed to having loopholes that allow the vast majority of merger proposals to be approved.

“Merger review for the bureau is the first line of defence against concentration,” an official for the bureau said Thursday. “We need a strong Competition Act that lets us gather the information we need go after and the conduct we want to go after and really get remedies.”

Keldon Bester, the executive director of the Canadian Anti-Monopoly Project says the report “paints a picture that will be familiar to Canadians.”

While the report didn’t single out any particular industries as being any worse or better, overall, “the top firms stay the top firms for a greater duration. There’s less jostling and fewer new entrants to challenge them,” Bester said in an interview Thursday.

“That leads to stagnation and a loss of dynamism.”

New outlook needed

Bester says one interesting takeaway was that the report examined to what extent larger companies really are more efficient and found little evidence that was the case.

“That raises questions as to whether we should let companies acquire each other because of these efficiency benefits that we might not be seeing,” he said.

Ultimately, Bester says, an overhaul of Canada’s Competition Act is definitely justified, but he warns that isn’t a panacea that will magically make everything better and cheaper for consumers.

“How do we get more Canadians to start businesses?” he said. “How do we get businesses to scale up to go against new competitors? How do we change our mindset as Canadians that says as long as things are stable, they’re fine — because in reality, they might be in slow decline.”

 

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A linebacker at West Virginia State is fatally shot on the eve of a game against his old school

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CHARLESTON, W.Va. (AP) — A linebacker at Division II West Virginia State was fatally shot during what the university said Thursday is being investigated by police as a home invasion.

The body of Jyilek Zyiare Harrington, 21, of Charlotte, North Carolina, was found inside an apartment Wednesday night in Charleston, police Lt. Tony Hazelett said in a statement.

Hazelett said several gunshots were fired during a disturbance in a hallway and inside the apartment. The statement said Harrington had multiple gunshot wounds and was pronounced dead at the scene. Police said they had no information on a possible suspect.

West Virginia State said counselors were available to students and faculty on campus.

“Our thoughts and prayers are with Jyilek’s family as they mourn the loss of this incredible young man,” West Virginia State President Ericke S. Cage said in a letter to students and faculty.

Harrington, a senior, had eight total tackles, including a sack, in a 27-24 win at Barton College last week.

“Jyilek truly embodied what it means to be a student-athlete and was a leader not only on campus but in the community,” West Virginia State Vice President of Intercollegiate Athletics Nate Burton said. “Jyilek was a young man that, during Christmas, would create a GoFundMe to help less fortunate families.”

Burton said donations to a fund established by the athletic department in Harrington’s memory will be distributed to an organization in Charlotte to continue his charity work.

West Virginia State’s home opener against Carson-Newman, originally scheduled for Thursday night, has been rescheduled to Friday, and a private vigil involving both teams was set for Thursday night. Harrington previously attended Carson-Newman, where he made seven tackles in six games last season. He began his college career at Division II Erskine College.

“Carson-Newman joins West Virginia State in mourning the untimely passing of former student-athlete Jyilek Harrington,” Carson-Newman Vice President of Athletics Matt Pope said in a statement. “The Harrington family and the Yellow Jackets’ campus community is in our prayers. News like this is sad to hear anytime, but today it feels worse with two teams who knew him coming together to play.”

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AP college football: and

The Canadian Press. All rights reserved.



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Hall of Famer Joe Schmidt, who helped Detroit Lions win 2 NFL titles, dies at 92

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DETROIT (AP) — Joe Schmidt, the Hall of Fame linebacker who helped the Detroit Lions win NFL championships in 1953 and 1957 and later coached the team, has died. He was 92.

The Lions said family informed the team Schmidt died Wednesday. A cause of death was not provided.

One of pro football’s first great middle linebackers, Schmidt played his entire NFL career with the Lions from 1953-65. An eight-time All-Pro, he was enshrined into the Pro Football Hall of Fame in 1973 and the college football version in 2000.

“Joe likes to say that at one point in his career, he was 6-3, but he had tackled so many fullbacks that it drove his neck into his shoulders and now he is 6-foot,” said the late Lions owner William Clay Ford, Schmidt’s presenter at his Hall of Fame induction in 1973. “At any rate, he was listed at 6-feet and as I say was marginal for that position. There are, however, qualities that certainly scouts or anybody who is drafting a ballplayer cannot measure.”

Born in Pittsburgh, Schmidt played college football in his hometown at Pitt, beginning his stint there as a fullback and guard before coach Len Casanova switched him to linebacker.

“Pitt provided me with the opportunity to do what I’ve wanted to do, and further myself through my athletic abilities,” Schmidt said. “Everything I have stemmed from that opportunity.”

Schmidt dealt with injuries throughout his college career and was drafted by the Lions in the seventh round in 1953. As defenses evolved in that era, Schmidt’s speed, savvy and tackling ability made him a valuable part of some of the franchise’s greatest teams.

Schmidt was elected to the Pro Bowl 10 straight years from 1955-64, and after his arrival, the Lions won the last two of their three NFL titles in the 1950s.

In a 1957 playoff game at San Francisco, the Lions trailed 27-7 in the third quarter before rallying to win 31-27. That was the NFL’s largest comeback in postseason history until Buffalo rallied from a 32-point deficit to beat Houston in 1993.

“We just decided to go after them, blitz them almost every down,” Schmidt recalled. “We had nothing to lose. When you’re up against it, you let both barrels fly.”

Schmidt became an assistant coach after wrapping up his career as a player. He was Detroit’s head coach from 1967-72, going 43-35-7.

Schmidt was part of the NFL’s All-Time Team revealed in 2019 to celebrate the league’s centennial season. Of course, he’d gone into the Hall of Fame 46 years earlier.

Not bad for an undersized seventh-round draft pick.

“It was a dream of mine to play football,” Schmidt told the Detroit Free Press in 2017. “I had so many people tell me that I was too small. That I couldn’t play. I had so many negative people say negative things about me … that it makes you feel good inside. I said, ‘OK, I’ll prove it to you.’”

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Coastal GasLink fined $590K by B.C. environment office over pipeline build

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VICTORIA – British Columbia’s Environment Assessment Office has fined Coastal GasLink Pipeline Ltd. $590,000 for “deficiencies” in the construction of its pipeline crossing the province.

The office says in a statement that 10 administrative penalties have been levied against the company for non-compliance with requirements of its environmental assessment certificate.

It says the fines come after problems with erosion and sediment control measures were identified by enforcement officers along the pipeline route across northern B.C. in April and May 2023.

The office says that the latest financial penalties reflect its escalation of enforcement due to repeated non-compliance of its requirements.

Four previous penalties have been issued for failing to control erosion and sediment valued at almost $800,000, while a fifth fine of $6,000 was handed out for providing false or misleading information.

The office says it prioritized its inspections along the 670-kilometre route by air and ground as a result of the continued concerns, leading to 59 warnings and 13 stop-work orders along the pipeline that has now been completed.

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.



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