Competition panel silent on publishing company takeovers

Taking the narrow view, the report of the government-appointed panel of experts has delivered a report on competition policy appears to satisfy the Canadian magazine industry.

In February, Magazines Canada told the panel that, while there are a number of nagging trade and competition issues within Canada and between provinces, when it comes to the current foreign investment regime, they don't want to see it change much. At least for media, the panel seems to agree; or, at least, it doesn't say it doesn't agree.

The panel's just-released report, as reported by Canadian Press and published on cbc.ca, calls for it to be made easier for foreign firms to buy Canadian companies. It recommends that the ban on bank mergers be lifted and that restrictions on other industries, particularly air transport, telecommunications, uranium mining and broadcasting. But it apparently does not include Canadian publishers and media companies.

"The panel believes that Canada needs to be more open to competition, as competition spurs the productivity enhancements that underpin our economic performance and ultimately our quality of life," said chair Lynton (Red) Wilson in a release issued alongside the report titled Compete to Win.

However there may be a sting in the report as one of the bullet points in the release about the competition panel's report says that the Investment Canada Act should be more open and reduce barriers and, to that end should initiate "a comprehensive review of Canada’s cultural policies." What does that mean? and what will it mean?

The 134-page report does not directly tackle the hottest topic facing the government on competition policy [says the CBC] — national security involving investments by state-owned enterprises — but does assume such a test will be enacted by government.

The panel wants to see the threshold under which foreign takeovers would be reviewed under the Investment Canada Act to $1 billion from the current $295 million. And it recommends that the government, rather than the applicant, bear the onus for demonstrating that a foreign acquisition is to the net benefit of Canada.