Wednesday, May 21, 2025
No Result
View All Result
  • Media
Support Us
Macdonald-Laurier Institute
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
  • Experts
    • Experts Directory
    • In Memoriam
  • Issues
    • Domestic Policy
      • Economic Policy
      • Justice
      • Rights and Freedoms
      • Assisted Suicide (MAID)
      • Health Care
      • COVID-19
      • Gender Identity
      • Canada’s Political Tradition
      • AI, Technology and Innovation
      • Media and Telecoms
      • Housing
      • Immigration
      • Agriculture and Agri-Food
      • Competition Policy
    • Energy Policy
      • Energy
      • Environment
    • Foreign Policy
      • Israel-Hamas War
      • Ukraine
      • Taiwan
      • China
      • Europe and Russia
      • Indo-Pacific
      • Middle East and North Africa
      • North America
      • Foreign Interference
      • National Defence
      • National Security
      • Foreign Affairs
    • Indigenous Affairs
  • Projects
    • CNAPS (Center for North American Prosperity and Security)
    • The Promised Land
    • Voices that Inspire: The Macdonald-Laurier Vancouver Speaker Series
    • Dragon at the Door
    • Canada on top of the world
    • Justice Report Card
    • The Great Energy Crisis
    • DisInfoWatch.org
    • Double Trouble
    • Digital Policy & Connectivity
    • Managing Indigenous Prosperity
    • Defending The Marketplace of Ideas
    • Reforming the University
    • Past Projects
      • Canada and the Indo-Pacific Initiative
      • The Transatlantic Program
      • COVID Misery Index
        • Provincial COVID Misery Index
        • Beyond Lockdown
        • COVID and after: A mandate for recovery
      • Speak for Ourselves
      • The Eavesdropping Dragon: Huawei
      • Talkin’ in the Free World with Mariam Memarsadeghi
      • An Intellectual Property Strategy for Canada
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
      • Straight Talk
      • Labour Market Report
      • Leading Economic Indicator
      • Centre for Advancing Canada’s Interests Abroad
      • Indigenous Prosperity at a Crossroads
        • Aboriginal Canada and Natural Resources
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Inside Policy
  • Libraries
    • Columns
    • Commentary
    • Papers
    • Books
    • Video
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
  • Experts
    • Experts Directory
    • In Memoriam
  • Issues
    • Domestic Policy
      • Economic Policy
      • Justice
      • Rights and Freedoms
      • Assisted Suicide (MAID)
      • Health Care
      • COVID-19
      • Gender Identity
      • Canada’s Political Tradition
      • AI, Technology and Innovation
      • Media and Telecoms
      • Housing
      • Immigration
      • Agriculture and Agri-Food
      • Competition Policy
    • Energy Policy
      • Energy
      • Environment
    • Foreign Policy
      • Israel-Hamas War
      • Ukraine
      • Taiwan
      • China
      • Europe and Russia
      • Indo-Pacific
      • Middle East and North Africa
      • North America
      • Foreign Interference
      • National Defence
      • National Security
      • Foreign Affairs
    • Indigenous Affairs
  • Projects
    • CNAPS (Center for North American Prosperity and Security)
    • The Promised Land
    • Voices that Inspire: The Macdonald-Laurier Vancouver Speaker Series
    • Dragon at the Door
    • Canada on top of the world
    • Justice Report Card
    • The Great Energy Crisis
    • DisInfoWatch.org
    • Double Trouble
    • Digital Policy & Connectivity
    • Managing Indigenous Prosperity
    • Defending The Marketplace of Ideas
    • Reforming the University
    • Past Projects
      • Canada and the Indo-Pacific Initiative
      • The Transatlantic Program
      • COVID Misery Index
        • Provincial COVID Misery Index
        • Beyond Lockdown
        • COVID and after: A mandate for recovery
      • Speak for Ourselves
      • The Eavesdropping Dragon: Huawei
      • Talkin’ in the Free World with Mariam Memarsadeghi
      • An Intellectual Property Strategy for Canada
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
      • Straight Talk
      • Labour Market Report
      • Leading Economic Indicator
      • Centre for Advancing Canada’s Interests Abroad
      • Indigenous Prosperity at a Crossroads
        • Aboriginal Canada and Natural Resources
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Inside Policy
  • Libraries
    • Columns
    • Commentary
    • Papers
    • Books
    • Video
No Result
View All Result
Macdonald-Laurier Institute

Why big isn’t bad: Tougher competition policy for ‘Big Tech’ is a solution in search of a problem

November 8, 2021
in Domestic Policy, Competition policy, Issues, Latest News, Library, Economy Policy - papers, Papers, Economic Policy, Releases
Reading Time: 3 mins read
A A

OTTAWA, ON (November 8, 2021): The explosive growth of e-commerce during the pandemic has had tremendous benefits for consumers, but it has also raised concerns about the growing size of major industry players such as Amazon, Google, Apple, Microsoft, and Facebook. Europe and the US have moved to impose antitrust measures and sweeping new competition policies against the titans of tech, and there are calls in Canada to do the same.

Canada’s Commissioner of Competition has pushed for a review of Canadian competition law in light of these issues. However, a close analysis shows that Canada’s competition law and Competition Bureau are, for the most part, up to the task of addressing any real harms or anti-competitive behaviour, and imposing major new regulations could instead inhibit innovation and harm consumers.

In a new MLI paper titled “Up to the task: Why Canadians don’t need sweeping changes to competition policy to handle Big Tech,” authors Anthony Niblett and Daniel Sokol warn that history is replete with examples of how populist efforts to target companies based primarily on their size havebeen to the detriment of consumers.

“Competition law in Canada does not need an overhaul,” write Niblett and Sokol. “Dramatic changes to the Canadian Competition Act are not required to best foster competition in the Canadian economy. Indeed, such changes would likely be harmful.”

According to the authors, much of the push to radically overhaul competition policy is based on the idea that “big is bad,” or that the size of major digital service providers is driving inequality and the erosion of free speech and democracy. “Many of the calls for greater regulation are driven by the desire to address a variety of broader social and political harms that are perceived to be caused by large digital platforms,” write Niblett and Sokol. Competition policy is not and should not be “designed to cure all the ills of society relating to things such as commerce, technology, and employment.”

Practices such as vertical integration – when an organization controls multiple parts of its supply or value chains, including with respect to consumer data – are often cited as inherently harmful to consumers. Yet, vertical integration has generally been found to substantially benefit consumers and foster innovation. In cases where such practices are harmful, the Competition Act and the Canadian Competition Bureau are already capable of addressing them.

Thus, the authors argue that “wholesale dramatic changes – such as those proposed in Europe and the United States – are simply not required” in Canada, and indeed overzealous efforts to reform competition policy could squeeze out small entrepreneurial firms as well.

What can be done? Extra resources for the Competition Bureau to enforce the laws against abuse of dominance will likely have a positive effect, and there are good reasons to think private rights of action and increased penalties would further encourage compliance with the Act.

But sweeping regulations that restrict the vertical integration of digital platforms and affect the ability of platforms to control their data will likely fail to capture the very diverse ways in which digital platforms compete and innovate.

“The focus should continue to be on lower prices, higher quality, and – perhaps most importantly – fostering innovation.”

To learn more, read the full paper here:

***

Anthony Niblett is an associate professor at the University of Toronto Faculty of Law. He also holds the Canada Research Chair in Law, Economics, and Innovation. His background is in both economics and law.

Daniel Sokol is a Professor of Law at the USC Gould School of Law and Affiliate Faculty at the Marshall School of Business.

For more information, media are invited to contact:

Brett Byers
Communications and Digital Media Manager
613-482-8327 x105
brett.byers@macdonaldlaurier.ca

Tags: big techCompetition PolicyDaniel Sokoleconomyeconomic policy

Related Posts

Indigenous partnerships are key to kickstarting Canada’s economy: JP Gladu and Caroline Cox in The Hub
Indigenous Affairs

Indigenous partnerships are key to kickstarting Canada’s economy: JP Gladu and Caroline Cox in The Hub

May 20, 2025
It’s not just the economy — Canada must find its place in new world order: Christopher Coates in the Windsor Star
Foreign Affairs

It’s not just the economy — Canada must find its place in new world order: Christopher Coates in the Windsor Star

May 20, 2025
Anand’s one-sided comments on Israel a strategic blunder: Alan Kessel in the National Post
Foreign Affairs

Anand’s one-sided comments on Israel a strategic blunder: Alan Kessel in the National Post

May 20, 2025
Next Post
ORF-MLI Workshop: India-Canada Partnership on Afghanistan

ORF-MLI Workshop: India-Canada Partnership on Afghanistan

Newsletter Signup

  Thank you for Signing Up
  Please correct the marked field(s) below.
Email Address  *
1,true,6,Contact Email,2
First Name *
1,true,1,First Name,2
Last Name *
1,true,1,Last Name,2
*
*Required Fields

Follow us on

Macdonald-Laurier Institute

323 Chapel Street, Suite #300
Ottawa, Ontario, K1N 7Z2 Canada

613.482.8327

info@macdonaldlaurier.ca
MLI directory

Support Us

Support the Macdonald-Laurier Institute to help ensure that Canada is one of the best governed countries in the world. Click below to learn more or become a sponsor.

Support Us

  • Inside Policy Magazine
  • Annual Reports
  • Jobs
  • Privacy Policy

© 2023 Macdonald-Laurier Institute. All Rights reserved.

No Result
View All Result
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
  • Experts
    • Experts Directory
    • In Memoriam
  • Issues
    • Domestic Policy
      • Economic Policy
      • Justice
      • Rights and Freedoms
      • Assisted Suicide (MAID)
      • Health Care
      • COVID-19
      • Gender Identity
      • Canada’s Political Tradition
      • AI, Technology and Innovation
      • Media and Telecoms
      • Housing
      • Immigration
      • Agriculture and Agri-Food
      • Competition Policy
    • Energy Policy
      • Energy
      • Environment
    • Foreign Policy
      • Israel-Hamas War
      • Ukraine
      • Taiwan
      • China
      • Europe and Russia
      • Indo-Pacific
      • Middle East and North Africa
      • North America
      • Foreign Interference
      • National Defence
      • National Security
      • Foreign Affairs
    • Indigenous Affairs
  • Projects
    • CNAPS (Center for North American Prosperity and Security)
    • The Promised Land
    • Voices that Inspire: The Macdonald-Laurier Vancouver Speaker Series
    • Dragon at the Door
    • Canada on top of the world
    • Justice Report Card
    • The Great Energy Crisis
    • DisInfoWatch.org
    • Double Trouble
    • Digital Policy & Connectivity
    • Managing Indigenous Prosperity
    • Defending The Marketplace of Ideas
    • Reforming the University
    • Past Projects
      • Canada and the Indo-Pacific Initiative
      • The Transatlantic Program
      • COVID Misery Index
      • Speak for Ourselves
      • The Eavesdropping Dragon: Huawei
      • Talkin’ in the Free World with Mariam Memarsadeghi
      • An Intellectual Property Strategy for Canada
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
      • Straight Talk
      • Labour Market Report
      • Leading Economic Indicator
      • Centre for Advancing Canada’s Interests Abroad
      • Indigenous Prosperity at a Crossroads
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Inside Policy
  • Libraries
    • Columns
    • Commentary
    • Papers
    • Books
    • Video

© 2023 Macdonald-Laurier Institute. All Rights reserved.