Naked Restraint#

  • Naked restraints, sometimes also referred to as “hard” restraints, are restrictions on competition that are not intended to promote competition.


  • According to Article 45 of the Competition Act, price fixing, market division/distribution and production limitation agreements between competitors are undisguised restrictions.

  • “As described below, the criminal prohibition in section 45 is reserved for agreements between competitors to fix prices, allocate markets or restrict output that constitute “naked restraints” on competition. Other forms of competitor collaborations, such as joint ventures and strategic alliances, may be subject to review under the reviewable matters provisions in Part VIII of the Act.” (Competitor Collaboration Guidelines, Competition Bureau, May 6, 2021, section 1.1).