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Federal Court of Appeal decision clears the way for restored competition in hazardous waste disposal market

OTTAWA, February 11, 2013 — The Competition Bureau today welcomed a decision from the Federal Court of Appeal (FCA) that upholds an order by the Competition Tribunal requiring Tervita (formerly known as CCS Corporation) to divest the Babkirk hazardous waste landfill site.

"We are pleased that the Court has dismissed Tervita's appeal with costs and upheld the Tribunal's order," said Interim Commissioner of Competition, John Pecman. "If the acquisition had been allowed, Tervita would have been in a position to entrench its monopoly on secure hazardous waste disposal in Northeastern British Columbia."

The Competition Bureau filed an application with the Competition Tribunal on January 26, 2011 to challenge CCS Corporation's acquisition of Complete Environmental Inc. and its proposed Babkirk hazardous waste landfill site. The Bureau's application alleged that the transaction would lead to a substantial prevention of competition in the market for the disposal of hazardous waste within Northeastern British Columbia. On May 29, 2012, the Competition Tribunal ruled in favour of the Commissioner and ordered CCS Corporation to divest the Babkirk hazardous waste landfill site. Today's ruling by the FCA rejects an appeal launched by Tervita in June 2012, and upholds the Tribunal's order. The reasons for the FCA's judgment are expected to be made public next week.

"In light of this ruling from the FCA, we expect Tervita to act quickly to implement the Tribunal's order," said Senior Deputy Commissioner of Competition Kelley McKinnon, "The divestiture of the Babkirk hazardous waste landfill site will benefit consumers and businesses alike by promoting competitive pricing and services, instead of the inflated rates and diminished services that would have continued if the merger were allowed to stand."

This case marks the Bureau's first court challenge to a merger since 2005, and sets an important precedent for future prevention of competition cases. The Bureau is committed to enforcing the merger provisions of the Competition Act in respect of mergers of all sizes, not only those that surpass the merger pre-notification thresholds.

The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.

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