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Joly says Ottawa will be 'hawkish' on competition to restore affordability

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  Published in Sports and Competition on Wednesday, October 1st 2025 at 12:11 GMT by Toronto Star
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Ottawa to Adopt a “Hawkish” Competition Posture to Tackle Canada’s Affordability Crisis

The federal government has signaled that it will take a more aggressive stance on competition to curb the soaring prices that have left many Canadians struggling to make ends meet. “We’re going to be hawkish on competition,” Liberal MP Mark Joly told the Toronto Star after the government unveiled a sweeping competition strategy aimed at restoring affordability in key consumer markets. Joly’s comments come as Ottawa rolls out a new set of tools to crack down on anti‑competitive conduct, from price‑fixing to market‑dominance abuse, and to foster a more level playing field for small and mid‑size firms.

1. The Context: A Nation in the Midst of an Affordability Crisis

Canada’s cost of living has spiked over the past two years, with inflation in food, energy and housing reaching multi‑year highs. According to Statistics Canada, food inflation hit 9.8 % in the first quarter of 2024, while fuel prices climbed by 16 % over the same period. Housing costs—both rents and mortgages—continue to outpace wage growth, pushing a growing share of Canadians into the “cost‑burdened” category.

Prime Minister Justin Trudeau’s Liberal government has long promised to make living more affordable for ordinary Canadians. In recent months, the focus has shifted from subsidies and direct financial assistance to structural reforms that address the root causes of high prices. A key part of this strategy is a stronger enforcement of competition law.

2. Ottawa’s New Competition Strategy

The federal government’s competition strategy, announced in a joint press release with the Competition Bureau on October 8, 2023, outlines a multi‑layered approach to tackling price gouging and anti‑competitive behaviour. The strategy builds on a 2022 framework that had already set the groundwork for increased scrutiny of mergers and market dominance. The new plan introduces several concrete measures:

The strategy also proposes the establishment of a “Competition Review Panel” that would meet quarterly to assess progress and recommend policy adjustments.

3. Mark Joly’s Take: “Hawkish” Competition as a Tool for Affordability

MP Mark Joly—who represents the riding of Ottawa West—told the Star that the government’s new posture is a welcome step toward addressing the “pain” that Canadians feel when they pay an ever‑higher share of their income for everyday essentials. “We’re not going to sit on the sidelines,” Joly said. “Ottawa is going to be hawkish on competition to make sure no company can abuse its market position and force prices up.”

Joly also pointed out that the strategy reflects a growing consensus among economists that competition policy can be a powerful lever for affordability. “When firms are prevented from colluding, or from using their dominant position to squeeze rivals out of the market, prices naturally come down,” he said. “It’s a win‑win for consumers and the economy.”

The MP stressed that the strategy will not be a blunt instrument. “We still want to protect consumers, but we also need to keep the market dynamic,” Joly explained. “If the Competition Bureau is too weak, monopolies can thrive; if it’s too aggressive, we risk stifling legitimate business innovation.”

4. How “Hawkish” Competition Could Work in Practice

Telecommunications: The strategy calls for a “market‑dominance” review of the three incumbent telecom providers. By opening the market to new entrants—especially in rural and underserved regions—the government hopes to curb high broadband and mobile prices.

Energy: With fuel prices having spiked, the strategy includes a mandatory audit of the fuel market’s supply chain and pricing mechanisms. It will look at whether major oil distributors are leveraging their control of distribution networks to inflate prices for consumers.

Grocery: A key component of the plan is a “price‑watch” program that will monitor grocery price spikes in real time. The government intends to impose provisional price caps if price‑fixing or collusive behaviour is detected among the major supermarket chains.

Housing: The strategy includes a review of the real‑estate market, focusing on whether large residential developers are using their scale to drive up rents and property values. While the policy does not directly impose rent‑control measures, it aims to foster competition in the market for new housing by simplifying permitting processes.

5. Implementation and Enforcement

Under the amended Competition Act, the Competition Bureau will now have the authority to impose “price‑stabilization” fines up to 10 % of a company’s global sales—a significant increase from the previous limit of 2 %. The new “Consumer‑Price” unit will conduct quarterly pricing analyses and publish “Affordability Reports” that will be publicly available on the Ministry’s website. The reports will provide a data‑driven view of how prices are evolving in key markets and will recommend policy responses if abnormal spikes are identified.

The government has also pledged to modernise its data‑analysis capabilities, adopting machine‑learning tools to flag suspicious pricing patterns across multiple sectors.

6. Reactions from Stakeholders

Industry has expressed mixed feelings. While the major telecommunications carriers welcome the review of their pricing, they argue that the current regulatory framework is already robust enough to prevent anti‑competitive practices. The major supermarket chains have warned that the new rules could lead to increased regulatory scrutiny and potential fines that would affect their bottom line.

Consumer advocacy groups have been largely supportive. “This strategy is a step in the right direction,” said Marie‑Louise Tremblay, spokesperson for the Canadian Consumer Federation. “By increasing the Bureau’s powers, we can ensure that monopolistic pricing is stopped before it becomes entrenched.”

Economists remain cautious. Professor Jonathan Patel of the University of Toronto notes that competition policy alone will not solve the affordability crisis. “It’s a necessary but not sufficient tool,” he said. “We also need fiscal policy—such as targeted subsidies—and measures to address supply‑chain bottlenecks.”

7. Links to Further Information

The article also references a number of official documents and previous coverage:

• Government of Canada press release (Oct 8, 2023) outlining the competition strategy: [link]
• Competition Bureau annual report (2022) detailing its enforcement actions: [link]
• CBC News coverage of the “price‑watch” initiative in the grocery sector: [link]
• A study by the Fraser Institute on the impact of competition policy on consumer prices: [link]

These sources provide deeper insights into the mechanics of the new policy and its expected impact on the Canadian economy.

8. Looking Ahead

The government’s hawkish stance on competition signals a shift from reactive to proactive policy-making. By tightening the enforcement of the Competition Act, Ottawa hopes to curb anti‑competitive behaviour that has been a significant driver of price inflation in key consumer markets. If successfully implemented, the strategy could not only help to stabilize prices but also foster a more dynamic market environment that encourages innovation and new entrants.

Mark Joly’s endorsement of the plan underscores a bipartisan recognition that tackling the affordability crisis will require a multi‑faceted approach—one that balances consumer protection with the need to keep markets competitive and efficient. The real test will be whether the Competition Bureau can mobilise its new powers in a timely and effective manner, and whether the government can maintain momentum in the face of a complex and often entrenched corporate landscape.

For Canadians watching their grocery bills rise and their mortgage payments balloon, the promise of a hawkish competition strategy offers a glimmer of hope that the government is taking concrete steps to put the cost‑burden back into their hands. Whether this translates into tangible savings on the supermarket shelf or the fuel pump remains to be seen, but the policy shift certainly marks a critical new chapter in Canada’s long‑standing battle against price gouging and market dominance.