The Competition Tribunal ruled in favor of the Canadian Competition Bureau’s Commissioner of Competition in his challenge of Secure Energy’s acquisition of Tervita.
Retained by the Canadian Competition Bureau
The Canadian Competition Bureau retained Nathan Miller of Georgetown University and Greg Eastman of Cornerstone Research to analyze a transaction between the two largest waste service providers in Canada, Secure Energy Services Inc. and Tervita Corporation. Professor Miller assessed the competitive effects and deadweight loss resulting from this transaction. Dr. Eastman assessed the merging parties’ efficiency claims.
Professor Miller and Dr. Eastman filed expert reports during the Section 104 Interim Order injunction phase and the Section 92 merger challenge phase. Both Professor Miller and Dr. Eastman filed rebuttal testimony and appeared at the Competition Tribunal (Tribunal)’s hearing.
The Tribunal found Dr. Miller “knowledgeable, helpful, candid, and forthcoming with the panel” and “genuinely interested in assisting the Tribunal to make the right determinations.”
Professor Miller submitted testimony explaining his analysis of the relevant product and geographic markets, competitive effects on prices for waste services, and deadweight loss stemming from planned facility closures and higher waste service prices.
Professor Miller’s analysis featured a merger simulation which found that the merger would significantly increase the prices for waste service disposal paid by oil and natural gas producers. His analysis also quantified several sources of total welfare loss stemming from the merger. Professor Miller’s analysis quantified the lost surplus from fewer facility choices due to planned facility closures. He also quantified lost welfare from increased waste disposal prices, potentially leading to lower levels of Canadian oil and natural gas production or lower levels of safe waste disposal.
The Tribunal found Dr. Miller “knowledgeable, helpful, candid, and forthcoming with the panel” and “genuinely interested in assisting the Tribunal to make the right determinations.”
Dr. Eastman reviewed and criticized the parties’ efficiency claims. The Tribunal found that “gains in efficiency are much less than the total efficiency gains claimed by Secure.”
On March 3, 2023, the Tribunal ruled in favor of the Commissioner of Competition in his challenge of Secure Energy’s acquisition of Tervita. The Tribunal ordered Secure to sell 29 facilities to resolve the substantial lessening of competition in 136 relevant markets.
Secure appealed the decision to the Federal Court of Appeal. On August 2, 2023, the Federal Court of Appeal dismissed Secure’s petition, upholding the Tribunal’s successful merger challenge.
Washington
