The Director of Investigation and Research applied for an order requiring Southam to divest itself of several community newspapers, alleging the acquisitions substantially lessened competition in the print advertising market.
The Competition Tribunal found a substantial lessening of competition only in the real estate print advertising market on the North Shore and ordered divestment of either the North Shore News or the Real Estate Weekly.
The Federal Court of Appeal overturned the Tribunal's market definition on the merits but upheld the remedy.
The Supreme Court of Canada allowed the appeal on the merits, establishing that the Tribunal's decisions on questions of mixed law and fact are subject to a standard of reasonableness simpliciter due to its economic expertise, and restored the Tribunal's original decision.
The appeal on the remedy was dismissed.
