GATINEAU, April 24, 2026 — Canada’s Competition Bureau Canada has warned companies that participating in illegal agreements related to public procurement—such as bid-rigging or price-fixing—can lead to criminal prosecution, substantial fines and long-term reputational damage.
The authority said the risk of collusion among competitors may increase during periods when public procurement opportunities expand, as companies competing for government contracts may be tempted to coordinate bids or prices to secure contracts.
Criminal penalties for collusion
The Bureau reminded businesses that agreements between competitors—including bid-rigging, price-fixing, market allocation, supply restriction, wage-fixing and no-poaching arrangements—are criminal offences under Canada’s competition law.
Companies and individuals involved in such conduct may face significant fines and prison sentences of up to 14 years, as well as possible class action lawsuits for damages.
Firms caught engaging in bid-rigging in public procurement can also be debarred from future government tenders, effectively preventing them from participating in public sector projects.
Protecting taxpayer funds
The agency emphasized that collusion in public contracting undermines fair competition and wastes public money.
According to the Bureau, illegal agreements between competitors can inflate public procurement costs by more than 30%, diverting funds away from essential public services.
Public procurement accounts for roughly 15% of Canada’s GDP, with governments at all levels spending hundreds of billions of dollars annually on goods, services and infrastructure.
Encouraging compliance and reporting
The Bureau urged companies to ensure their employees understand competition law obligations when bidding for contracts and to implement compliance programs designed to prevent collusion risks.
It also encouraged whistleblowers, businesses and members of the public to report suspected anti-competitive conduct through its information channels or anonymous tip lines.
The authority added that companies involved in illegal agreements may be able to seek immunity or leniency if they come forward and cooperate with investigations.
