Regulator drops beer probe

[swall]

Regulator drops beer probe
JACQUIE McNISH
16:14 EST Friday, Jan 16, 2009

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The federal Competition Bureau has abandoned its contentious investigation of the merger of Labatt Brewing Co. Ltd. and Lakeport Brewing.

In a statement, the bureau said it had concluded it did not have enough evidence to challenge the 2007 merger, which gave Labatt, Canada's dominant beer company, a 41-per-cent share of Ontario's discount brewery market.

“After an extensive examination, including consultations with industry experts, external economists, and industry participants, the bureau has concluded that there is insufficient evidence to establish that the transaction is likely to substantially lessen or prevent competition.”

The regulator's decision ends nearly two years of bitter legal feuding with Labatt, which successfully challenged in three separate court and tribunal hearings the bureau's investigation tactics and the scope of its requests for confidential brewery industry data.

“The bureau takes seriously its mandate to promote and maintain competitive markets on behalf of Canadians,” said Melanie Aitken, interim commissioner of competition. “It is important that we get access to relevant information and have an opportunity to evaluate it before coming to a conclusion.”

The unusually heated legal battle between Labatt and the bureau culminated in a Federal Court ruling early last year which censured the former commissioner, Sheridan Scott, for “misleading” the court about the extent of materials it had already subpoened from brewers as part of its probe.

The scathing decision prompted an independent probe which exonerated Ms. Scott and the commission and took competition lawyers to task for their overly aggressive legal strategies.

Ms. Scott resigned from the bureau in December and Ms. Aitken, former head of the mergers division, was appointed acting commissioner.

[Uncle Bobby]

Thanks for posting this item, Swall.

That sounds ugly, like they ran over someone who was trying to stand in their way.

And not enough evidence? They might have started by reading the Globe and Mail.