Not content with the 2022 changes to the Competition Act, Canada was announcing this week that it will be looking into making even more changes, based on a consultation it has now undertaken. Use of technology is changing how society is going about things and the economy is of course following suit. In a context of constant changes, it’s not very surprising we also need to keep updating our statute that deals with preserving competition between businesses.
Canada will be looking to make changes such as those discussed in a recent document published by the government and which provided us with a fair indication as to what may be in store for the Competition Act, moving forward.
This is happening in Canada but other countries like the U.S. are experiencing the same kind of thing.
In a story that seems a good example of what we’re talking about, the Verge was reporting a story earlier this week about the U.S. Department of Justice (DOJ) looking into practices by some American landlords (lessors) potentially fixing prices for rental space (to a degree), by using the RealPage software to collaborate.
The story at issue relates to the fact that, nowadays, large landlords often subscribe to a platform called YieldStar (connected to RealPage) that easily allows them to share part of the data about their rental rates, in various markets. Over time, the system has enough data to suggest possible rentals rates to landlords looking to rent premises, as compared to other deals in the same area for such premises. In practice, this may lead to higher rates than would otherwise have been the case, had landlords not shared info like this.
In essence, if every landlord ends-up sharing data with other landlords in the market (in this instance, through use of a specific software), we may end-up with a coordinated effort that results in an increase in rental rates across the country. If this amounts to collusion, then legally there may be an issue of competition law, by the sheer use of RealPage and YieldStar, including certain message boards that are part of that offering. That’s the question the DOJ is looking into anyway.
Interesting fact pattern that’s symptomatic of the interaction which technology can have with competition law. Sharing is fine, but cartel-like practices may be crossing a line.