Competition/Antitrust & Foreign Investment Outlook 2026: More Enforcement and Expanded Policy Objectives

Canada enters 2026 amid uncertainty and opportunity over the future direction of competition and foreign investment enforcement and policy. As a new Commissioner of Competition steps into the role, will enforcement priorities at the Competition Bureau take a new direction? And will the federal government finally give effect to foreign investment reforms first announced in 2022? These questions follow a year that was expected to deliver more than transition, following several years of legislative change to both the Competition Act and Investment Canada Act. Those reforms were designed to enable stronger, faster enforcement of Canada’s competition laws and to prioritize Canada’s national security. Looking forward, we assess whether the next year is expected to finally achieve the long-anticipated regulatory transition or mark the start of a new enforcement paradigm.

Key Insights at a Glance

Investment Canada Act: Is 2026 the year for the expanded filing regime?

While national security enforcement remains strong, the implementation of a new mandatory, pre-closing filing regime was delayed in 2025. Coupled with the introduction of expanded powers to call in transactions by state-owned investors for net benefit review, the expected implementation of these amendments in 2026 will be consistent with the importance of Canada’s national security regime to the country’s ability to navigate the unpredictable geopolitical climate that has developed in the last 12 months. Investors can expect more friction in foreign investment review and procedural changes to filing obligations in the coming year.

Bureau Merger Review: More friction, but similar outcomes?

The introduction of an onus-shifting structural presumption based on measures of market concentration has changed the way the Competition Bureau assesses many mergers: lengthening timelines, altering the cadence of reviews and giving life to the Bureau’s “healthy skepticism” for merger activity in general. Nevertheless, the first 18 months of the amended regime have not delivered less technocratic enforcement, stronger remedies, or an increase in merger challenges. The revised Merger Enforcement Guidelines, expected to be published in 2026, are expected to codify the Bureau’s approach in general terms, but questions as to how policy and the exercise of enforcement discretion are likely to remain.

Cartels and Competitor Collaborations: Where’s the enforcement?

Cartel investigations continue to be on the rise and remain a priority for the Bureau. With 42 new cartel investigations commenced in 2024-2025 and the ongoing pursuit of domestic bid-rigging and other cartel cases, all indications point to active cartel enforcement going forward, even if the Bureau has not yet utilized the criminalized wage-fixing and no-poach provisions.

Abuse of Dominance and Unilateral Conduct: Can we expect more investigations into Big Tech?

The Bureau’s emphasis on investigating unilateral conduct remained strong in 2025. After six major investigations and landmark litigation against Google’s ad tech business in 2024, its push to test the dilution of the applicable legal tests and the expansion of possible sanctions for infringing conduct, intensified. The question remains whether 2026 will result in any concrete enforcement outcomes or if existing cases will continue to meander forward.

Deceptive Marketing: What’s happening with Drip Pricing, Greenwashing and ‘Maple Glazing’?

Deceptive marketing practices, particularly drip pricing, greenwashing and “Maple Glazing” (claiming that a product or service has Canadian origins) is expected to continue to be a focal point for Bureau enforcement activity, as 2025 witnessed further Bureau litigation against alleged drip pricing activities, as effort to enforce newly-minted greenwashing provisions did not translate into tangible enforcement action.

Competition Litigation: Is the class action landscape gathering momentum?

The recent trend by plaintiffs’ counsel toward pushing the boundaries on a range of substantive questions interpreting core principles of the Competition Act is not expected to slow down in 2026. Among a range of continuing themes, we expect important jurisprudence on the proper scope of section 45 conspiracy evidence, aiding and abetting allegations against non-competitors, and hub-and-spoke or information exchange theories being tested under the criminal provisions.

What’s the best approach in 2026 for companies with a nexus to Canada?

Though uncertainties remain, businesses should anticipate that shifting enforcement priorities and political oversight under the Competition Act and Investment Canada Act could affect both the cadence of Bureau reviews and investigations, as well as the substantive risk calculus. By planning strategically, companies can mitigate some of this uncertainty, while building an evolving set of enforcement risks into their decision-making.

Download the publication to learn more about the competition and investment issues that will influence your business operations in the year ahead.

---

Competition/Antitrust & Foreign Investment Outlook 2026

Authored by our market-leading Competition/Antitrust & Foreign Investment group, our comprehensive Competition/Antitrust & Foreign Investment Outlook 2026 provides strategic insight and analyses of recent legislative amendments, evolving government enforcement policies and geopolitical influences that all combine to create an unpredictable regulatory environment for companies with a nexus to Canada.

Download the Publication

About McCarthy Tétrault’s Competition/Antitrust & Foreign Investment Group

Clients trust McCarthy Tétrault’s national Competition/Antitrust & Foreign Investment Group with their most strategic and critical competition, foreign investment and national security matters. Foreign law firms trust us with their valued clients. Our team has built a strong national and international reputation and continues to uphold it with every mandate. We pride ourselves on being practical, business friendly and responsive to clients’ timing and commercial requirements. Find out how we can help you grow and defend your business. 

About McCarthy Tétrault

McCarthy Tétrault LLP provides a broad range of legal services, providing strategic and industry-focused advice and solutions for Canadian and international interests. The Firm a has substantial presence in Canada’s major commercial centres as well as in New York and London.

Built on an integrated approach to the practice of law and delivery of innovative client services, the Firm brings its legal talent, industry insight and practice experience to help clients achieve the results that are important to them. For further information on McCarthy Tétrault or any of the above, please contact media@mccarthy.ca.