Blakes Competitive Edge™: February 2026 Update

Welcome to the February issue of Blakes Competitive Edge, a monthly publication of the Blakes Competition, Antitrust & Foreign Investment group. Blakes Competitive Edge provides an overview of recent developments in Canadian competition and foreign investment law, including updates on enforcement activity by the Canadian Competition Bureau (Bureau), recent initiatives and key trends.

Key Highlights

• Merger review activity in January this year is slightly lower than last year, with 15 reviews completed in 2026 compared to 18 in 2025.
• The Bureau releases its report highlighting the feedback it received on its algorithmic pricing consultation.
• The Federal Court of Appeal dismisses Cineplex's appeal in a deceptive marketing case.

Competition Act

Merger Monitor

January 1 – January 31, 2026 Highlights

• 23merger reviews announced; 15merger reviews completed, with reviews taking 33calendar days on average
• Primary industries of completed reviews: manufacturing (33%); information and cultural industries (27%); mining, quarrying, and oil and gas extraction (27%)
• 14 transactions received a No Action Letter (93%); one transaction received an Advanced Ruling Certificate (7%)

Merger Reviews Completed Year to Date Through January 31, 2026 by Primary Industry

Non-Enforcement Activity

Bureau Publishes Report on its Algorithmic Pricing Consultation

• On January 22, 2026, the Bureau published a "What We Heard" Report, summarizing the feedback it received through its public consultation on algorithmic pricing, which is the automated setting of prices based on data analysis. The report highlighted four key, recurring themes in the feedback received from respondents: (1) dynamic pricing can create market efficiencies; (2) algorithmic pricing can result in anti-competitive behaviour (e.g., collusion, predatory price cuts, deceptive marketing); (3) a lack of transparency on the data collected for the purposes of algorithmic pricing could harm consumers, workers and competition; and (4) regulations should address anti-competitive conduct without stifling innovation. For more information about the launch of the Bureau's consultation on algorithmic pricing, see our Blakes Competitive Edge": June 2025 Update.

Bureau Releases Peer-Reviewed Study Advocating for Regulatory Reforms in Canadian Industries

• On February 4, 2026, the Bureau announced the release of an independent, peer-reviewed study it commissioned titled The Potential Impact of Pro-Competitive Regulatory Reforms on Productivity and Growth in Canada. The study concludes that regulations in the Canadian energy, transportation, retail distribution and professional services industries are more restrictive than necessary. The authors highlight that pro-competitive reforms to these regulations would create a stronger environment for innovation, help close the productivity gap with leading economies, raise living standards for Canadians and result in a conservatively estimated 6.5% to 10% boost to Canada's gross domestic product (GDP). Additional gains could be realized by improving labour mobility between provinces, attracting greater foreign investment in Canadian businesses and reducing interprovincial trade barriers. For more information on interprovincial trade barriers, listen to Blakes Partner Julia Potter's conversation on the Counterfactual podcast, Barriers at Home: The Case for Interprovincial Free Trade.

Enforcement Activity

Federal Court of Appeal Dismisses Cineplex's Appeal in Deceptive Marketing Case

• On January 21, 2026, the Federal Court of Appeal dismissed Cineplex Inc.'s (Cineplex) appeal of the Competition Tribunal's (Tribunal) 2024 decision finding Cineplex liable for drip pricing. The Tribunal found that Cineplex did not adequately disclose a C$1.50 per ticket fee for movie tickets purchased online or on Cineplex's mobile app and ordered Cineplex to pay an administrative monetary penalty of approximately C$39-million (representing the total amount collected from the online booking fee), not to engage in the impugned conduct for 10 years and to pay an adverse cost award. In its appeal, Cineplex argued that the Tribunal (1) erred in its assessment of the "meaning" or "general impression" of the representations that Cineplex made, (2) erred in its interpretation of the drip pricing provisions of the Competition Act (Act) and their application to Cineplex's online booking fee, and (3) imposed a penalty that was inconsistent with the text and purpose of the Act and that was punitive, disproportionate and unprecedented. The Federal Court of Appeal held that the Tribunal's findings were largely factual in nature (which Cineplex did not seek leave to appeal), merited significant deference and that the Tribunal did not err in concluding that most consumers would not scroll down to see disclosures about the online booking fee. The Federal Court of Appeal also determined that the administrative penalty imposed was within the Tribunal's discretion given the recent amendments to the Act and the breadth and frequency of the conduct in question. For more information about the Cineplex case, see our Blakes Competitive Edge": June 2023 Update and Blakes Competitive Edge: October 2024 Update newsletters.

Investment Canada Act

Foreign Investment Monitor

Non-Cultural Investments

November 2025 Highlights

• 86 notifications filed (73 filed for acquisitions, 13 for the establishment of a new Canadian business)
• Country of ultimate control: United States (66%); United Kingdom (7%); France (5%); Germany (3%); Japan (3%)

January - November 2025 Highlights

• 6 reviewable investment approvals and 945 notifications filed (743 filed for acquisitions, 202 for the establishment of a new Canadian business)
• Country of ultimate control: United States (58%); France (7%); United Kingdom (6%); Germany (5%); China (2%)

Investment Canada Act Non-Cultural Investment Filings and Approvals, January – November 2025

Blakes Notes

• The Blakes Competition, Antitrust & Foreign Investment group was once again recognized with a Band 1 practice ranking in Chambers Global 2026. Seven partners from the group were recognized, including three ranked in Band 1.
• On February 9, 2026, Blakes published a bulletin, Competition Bureau Continues Focus on Financial Services: Market Study and Data Portability Report, regarding the Bureau's continued focus on the financial services sector.
• Browse our thought-leadership insights from the Competition, Antitrust & Foreign Investment group to learn more.

For permission to reprint articles, please contact the bulletin@blakes.com Marketing Department.

© 2025 Blake, Cassels & Graydon LLP.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.