This article is talking about Loblaws and their pricing strategies, and how they might be going against the Competition Act. The Competition Bureau is now investigating giant Loblaw Companies and some of its suppliers. The bureau is looking into this because it could have an effect on competition on the market. Loblaw recently bought Shoppers Drug mart and when this happened, the competition bureau approved the deal but also put restrictions on it.The reason for the restrictions was to help regulate prices, the bureau felt that if they didn't have any restrictions on the prices it would lead to higher prices paid by retailers and higher prices for consumers. Now of course, Loblaw feels like there isn't anything wrong and that they do not have inconsistent prices with a competitive market. Even though Loblaw believes nothing is wrong, they are still cooperating with the bureau and giving them everything they need for this investigation. With all of this happening the bureau has said there has been no wrongdoing and that they are looking for information on pricing strategies and programs with Loblaw and its suppliers, and all of this is relevant to their investigation.
The government function that is involved with this article is maintaining competition. This is the government function because this whole article deals with the competition act and competition on the market, as well as pricing strategies. The Competition Bureau is investigating this because they are worried about how Loblaw is setting their prices and how they are working with their suppliers. If there are no restrictions on prices between Loblaw and their suppliers then the pricing for products could get out of hand as well as bring down competition in the market. Consumers are only willing to pay certain prices and if a product is too expensive then people will no longer pay for that product and bring down competition.
