The Competition Act is federal legislation promoting competitive markets by prohibiting anti-competitive behaviour, reviewing mergers, and regulating certain business practices. While primarily focused on private sector markets, the Act can affect municipalities in several ways: municipal procurement must comply with competition principles, exclusive service contracts may face scrutiny, and intermunicipal agreements must avoid anti-competitive effects. The Competition Bureau enforces the Act and reviews mergers that might reduce competition. Understanding competition law helps municipalities structure procurement and partnerships appropriately. The Act reflects the principle that competition generally benefits consumers and the economy.