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AGM :: Affleck Greene McMurtry LLP

THE LITIGATOR

Affleck Greene McMurtry LLP
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Softvoyage settles abuse of dominance claims

Canadians are package vacation enthusiasts, the Competition Bureau found

Softvoyage Inc., a Canadian software company that produces content management software used by tour operators to create vacation packages and manage inventory, and distribution software enabling the sale of vacation packages to Canadian consumers, agreed to drop restrictions in its agreements that the Competition Bureau alleged prevent competition.

The Bureau found that Softvoyage enjoyed a dominant position in both the content management software and distribution software markets, with market shares of over 90% in each.

The Bureau found that restrictive clauses in Softvoyage’s contracts impeded the ability of potential competitors to enter the market. In particular, these clauses restricted the distribution channels available to tour operator who use Softvoyage’s content management software.

Softvoyage has agreed to a consent agreement that has been filed in the Competition Tribunal. Softvoyage has agreed (among other things):

  • To drop restrictive clauses the could prevent or dissuade Softvoyage’s clients, including tour operators and travel agencies, from using competing distribution software
  • To collaborate with tour operators to develop external APIs integrated with its software to provide shopping and booking functions that can be used by third parties
  • To distribute tour operator products that are managed using competing content management software

The agreement is in force for 7 years.

The Bureau’s detailed press release is here. The Consent Agreement is here.

W. Michael G. Osborne
Affleck Greene McMurtry LLP

W. Michael G. Osborne

Michael Osborne is a former Partner of Affleck Greene McMurtry LLP

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