Opening statement to the Standing Committee on Industry and Technology: Credit card practices and regulations in Canada

Remarks from Matthew Boswell, Commissioner of Competition

The House of Commons’ Standing Committee on Industry and Technology

November 25, 2024

Ottawa, Ontario

Good afternoon, Mr. Chair and members of the committee. Thank you for the invitation to appear before you this afternoon. My name is Matthew Boswell, and I am the Commissioner of Competition with the Competition Bureau. Joining me today are Krista McWhinnie, Deputy Commissioner of the Monopolistic Practices Directorate; and Anthony Durocher, Deputy Commissioner of the Competition Promotion Branch.  

As this committee is aware, the Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. We administer and enforce Canada's Competition Act, a law of general application that applies to every sector of the economy. We investigate and address abuses of market power, anti-competitive mergers, price-fixing, and deceptive marketing practices. The Bureau also advocates for pro-competitive government rules and regulations.   

I would like to acknowledge the work this committee and its members have been doing, and for bringing this particular issue to our attention through the letter from MP Rempel-Garner and MP Chambers, and this committee’s report presented in the House of Commons. Following receipt of your letter and testimony before your committee, we can confirm that we have launched a preliminary investigation into Interac’s conduct with respect to e-transfers.  

When firms are vertically integrated or work in multiple levels of a supply chain, competition risks can arise when the firm has both an ability and an incentive to harm their rivals through their position at multiple levels of the chain. In those cases, the Bureau can investigate whether conduct breaches the Competition Act (e.g., as a result of a merger, or an abuse of dominance). In the context of a regulatory system, it is important to ensure that a player is not in a position to both dictate the rules of the game, and benefit from them unfairly. 

It is important to recognize that we are enforcers of our legislation and not adjudicators or regulators that set rules for companies. The Competition Act requires us to meet several thresholds and standards when we bring cases before the courts. 

When we appeared before you last, we discussed the Bureau’s mandate as it relates to investigating and policing against monopolistic practices and guarding against deceptive practices, particularly in the context of the Canadian payments sector. We have also long promoted enhanced competition in the financial sector, including by encouraging a move toward consumer-driven banking, or open banking as it is also known. Consumer-driven banking has the potential to boost competition and innovation by challenging established providers and enabling new service providers, and Parliament and the government’s work on the file is crucial, because the need for progress is urgent. 

As my colleague, Ms. McWhinnie, noted at her previous appearance, the Bureau does not play an active role in commitments from companies to lower fees, nor do we regulate prices in the payments sphere or any other sector. Our role is limited to enforcing the Competition Act should its provisions be engaged and advocating that any government action be carried out in ways that encourage the most competition.   

Before responding to your questions, I will note that the law requires the Bureau to conduct its investigations in private and keep confidential the information we have. This obligation may prevent us from discussing certain details of our investigations.  

I would like to again thank the Committee for the opportunity to appear today. We look forward to your questions.