Competition Bureau Warns Businesses That Colluding on Public Contracts Has Consequences

Competition Bureau warns businesses that colluding to win public contracts carries serious consequences

From: Competition Bureau Canada

News release

Competition Bureau warns businesses that colluding to win public contracts carries serious consequences

April 24, 2026 – GATINEAU (Québec), Competition Bureau

Fair and competitive bidding ensures that Canadians receive the highest value for their tax dollars

April 24, 2026 – GATINEAU (Québec), Competition Bureau

The Competition Bureau is warning businesses that participating in illegal agreements related to public contracts, such as bid‑rigging and price‑fixing, can lead to criminal charges, significant fines and lasting reputational harm.

The risk of illegal agreements between competitors is heightened in periods of rapid growth in public procurement opportunities. As the number of public contracts calling for bids increases, Canadian companies pursuing the same opportunities may find it tempting to coordinate bids, prices, or outcomes to reduce uncertainty and secure a win.

Cracking down on illegal agreements between competitors targeting public contracts has long been a priority for the Competition Bureau. Businesses have legal obligations under the Competition Act when bidding on federal, provincial, territorial, and municipal contracts. Ensuring businesses follow these rules protects the significant investments being made by the Government.

Agreements between competitors, such as bid-rigging, price-fixing, market allocation, supply restriction, or wage-fixing and no-poaching agreements are illegal and criminal offences under the law. The consequences for these practices can be significant fines and possible prison sentences of up to 14 years. Businesses who collude can also face class action lawsuits for damages. And in the case of bid-rigging on public sector contracts, businesses can face debarment by public procurement agencies, and be cut off from bidding on future projects.

Businesses must understand how to compete fairly, act independently and take proactive steps to avoid pitfalls when submitting bids. To support lawful and independent bidding, the Bureau encourages businesses to use trusted guidance tools and implement compliance programs that help employees understand and avoid collusion risks.

Fighting collusion protects taxpayer investment

Collusion in public contracts undermines fair competition and erodes public confidence in government contracting. Illegal agreements between competitors can increase the cost of public procurement by more than 30%, diverting public funds away from taxpayers and essential public services.

When businesses operate in a fair and competitive manner, it helps ensure that Canadians receive the highest value for their tax dollars, allowing governments to reduce costs while improving the quality of goods and services procured. Playing by the rules also ensures that small and medium sized businesses and new market entrants can compete on a level playing field, rather than being excluded by collusion among established suppliers.

The Competition Bureau is committed to cracking down on collusion, and we’ll take action if we find evidence of illegal agreements between competitors.

Quick facts

• Public procurement accounts for roughly 15% of Canada’s GDP, making it one of the largest economic levers available to governments and a critical channel for public spending.
• Each year, governments at all levels in Canada collectively spend hundreds of billions of dollars on goods, services, and infrastructure, creating significant opportunities for businesses.

• Bid‑rigging and other forms of collusion are difficult to detect. The information from whistleblowers, businesses, and the public plays a critical role in protecting the integrity of Canada’s procurement systems. The Bureau strongly encourages:

  • anyone who suspects a company or individual of engaging in illegal agreements to report it through its Information Centre or online complaint form;
  • those who witness or suspect unethical business practices in federal contracting, such as bid-rigging, price‑fixing, bribery, undisclosed conflict of interest and fraudulent contract schemes, to provide information anonymously by calling 1-844-365-1616 or by submitting a tip;
  • those who believe that the company they work for has entered into an illegal agreement with its competitors to provide information through the Bureau’s Whistleblowing Initiative;
  • parties that have been involved in an illegal agreement with their competitors to come forward to seek immunity or leniency in exchange for their cooperation in the Bureau’s investigation.

Associated links

• Competitive bidding processes in the public sector: Procuring good value for taxpayer money
• Common types of illegal agreements that hinder competition
• Competitor Collaboration Guidelines
• Procurement Hub
• Compliance Hub
• Cases of bid-rigging, price-fixing and other illegal agreements between competitors

Contacts

Media inquiries: Media Relations
Email: media-cb-bc@cb-bc.gc.ca

General information: Request for information | Complaint form

Stay connected: X (Twitter) | Facebook | LinkedIn | YouTube | RSS Feed | Email Distribution List

The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

Search for related information by keyword: Business opportunities | Competition Bureau Canada | Canada | Procurement policies | business | consumers | employers | general public | government | media | non-governmental organizations | news releases

Page details

2026-04-24