Canadian Applied Systems says it will “fully cooperate” with the Competition Bureau’s investigation.
Insurance software business Applied Systems is facing a Canadian Competition Bureau investigation into alleged “anti-competitive” conduct.
The Federal Court of Canada granted an order on November 14, 2023, requiring Applied Systems Canada to produce records and written information for the Competition Bureau’s investigation.
The Competition Bureau will use information obtained during its Applied Systems investigation “to determine whether the alleged conduct is harming competition in Canada’s insurance technology (InsurTech) industry,” the department said in a new release.
The department is set to further investigate “whether Applied Systems has engaged in conduct contrary to the restrictive trade practices provisions of the Competition Act, including abuse of the dominance provision.”
What is abuse of dominance?
Abuse of dominance occurs when a business or group of businesses engages in activity that prevents or substantially reduces market competition.
Businesses found to have engaged in abuse of dominance may face a range of remedies, including agreed settlements, orders to undergo structural and behavioral changes, restraining and injunctive orders, or a fine of CA$10 for the first time. Administrative penalties including fine up to Rs. million. order, and CA$15 million for each subsequent order.
Applied Systems says it is “fully cooperating” with the Competition Bureau competition investigation
In a statement shared with Insurance Business, Applied Systems confirmed it is aware of the investigation and is “fully cooperating” in the review process.
“There has been no finding of any non-compliance. We believe Applied is in compliance with the Competition Act and we are confident that we will successfully resolve the investigation,” said Rich Cohn, chief legal counsel for Applied Systems.
“Our people are committed to Applied’s mission to deliver innovation that creates more value for the entire global insurance value chain and helps brokerages, insurers and partners protect and defend what matters most to millions of people around the world. make capable.”
Canada updated its Competition Act last year to expand its scope
The Parliament of Canada added amendments to the country’s Competition Act in June 2022, expanding its scope and clarifying an anti-competitive act, which is intended to “exercise or have a predatory, exclusionary, or disciplinary negative impact or adverse effect on a competitor.” ” On competition.”
Boswell said, “I am absolutely clear that our competition law is no longer fit for our modern economy and lags far behind the best practices used by other countries around the world.”
What are your views on the Competition Bureau launching an investigation into competitiveness in applied systems and insurance technology? Tell us in the comments below.
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