SCHEDULE "B" THE COMPETITION TRIBUNAL CT-95/02
IN THE MAT IER OF an application by the Director of Investigation and Research under sections 79 and 105 of the Competition Act, R.S.C. 1985, c.C-34, as amended;
AND IN THE MAT IER OF an abuse of dominant position in the supply of shared electronic network services for consumer-initiated shared electronic financial services;
AND IN THE MATTER OF a Consent Order granted by the Competition Tribunal dated June 20, 1996;
AND IN THE MAT IER OF an application by Bank of Montreal, et al., under sections 105 and 106(b) of the Competition Act, R.S.C. 1985, c.C-34, as amended, to vary the Consent Order granted by the Competition Tribunal datfl-..- cc.. .: o':.'flr:rn'?~ •. r::.1. -/'3'..:f.H\t June 20, 1996. BETWEEN: Bank of Montreal The Bank of Nova Scotia Canada Trustco Mortgage Company Canadian Imperial Bank of Commerce La Confederation des caisses populaires et d'economie Desjardins du Quebec Credit Union Central of Canada National Bank of Canada Royal Bank of Canada The Toronto-Dominion Bank lnterac Inc. - and -
The Director of Investigation and Research Respondent REVISED CONSENT ORDER
I m'.iJl!~~:l.:L !H tt. ci:::~o,;Pi~~c.:r.r: P 1 1 \ ~~e 11 1996 134 I~ ' . !( ..' _ .. ,:- .,I - ; '." _.: .~1 -1·,·, . •.1 .r.. t 1 l -·· - -y··1 ••. ' o··r;· .,,../l'l:.l /',•li l_.:::.:._.,~~:.::;_ ___ .:::_:_._ \VV u.:-- • Applicants
- 2 -Decided on the written record. Members: Counsel for the Applicants: Bank of Montreal The Bank of Nova Scotia Canada Trustco Mortgage Company Canadian Imperial Bank of Commerce La Confederation des caisses populaires et d'economie Desjardins du Quebec Credit Union Central of Canada National Bank of Canada Royal Bank of Canada The Toronto-Dominion Bank lnterac Inc.
Mark J. Nicholson Counsel for the Respondent: The Director of Information and Research D. Martin Low, Q.C.
- 3 -CO:MPETITON TRIBUNAL REVISED CONSENT ORDER Bank of Montreal et al. v. The Director of Investigation and Research FURTHER TO the application of the Director of Investigation and Research (the "Director") pursuant to sections 79 and 105 of the Competition Act (the "Act") and further to the notice of application dated December 14, 1995 for a consent order directing the respondents to cease engaging in certain anti-competitive acts associated with the supply of shared electronic network services for shared electronic financial services and other remedies specified in the draft consent order;
AND FURTHER TO the application of the Bank of Montreal et al. pursuant to sections 105 and 106(b) of the Act for an order varying the Consent Order granted by this Tribunal on June 20, 1996;
AND ON READING the notice of application, the statement of grounds and material facts, the affidavit of Fred J. Harris, the consent order impact statement and the consent of the parties filed herein;
AND WITH the consent of all parties; THE TRIBUNAL ORDERS THAT: 1. The Consent Order dated June 20, 1996 (the "Consent Order") shall be varied as follows:
- 4 -a. the following definitions shall be added to section 1 of the Consent Order: i. "failed transaction" shall mean a transaction which is not able to be completed due to a technical fault on the part of the Issuer;
ii. "lost transaction" shall mean a transaction which is not able to be completed due to a technical fault on the part of an Acquirer;
iii. "transaction" shall mean a series of messages passing between the Issuer and the Acquirer.
b. paragraph 3(m) of the Consent Order shall be amended as follows: "3. The charter members shall cause Interac to amend its memorandum of association and by-laws irrevocably to reflect the following:
(m) the provisions of the by-laws imposing service access fees shall be revoked. Subject to section 3 .1, Interac' s revenue shall be derived entirely from a switch fee. Interac and the DC members of the shared services may recover any reasonable direct and identifiable administrative or certification costs incurred during the course of admitting a new member into the services;"
c. a new section 3 .1 shall be added to the Consent Order and shall read as follows: "3.1 Notwithstanding section 3, the memorandum of association and by-laws of Interac may permit the development of policies which
- 5 impose monetary penalties on DCs with respect to failed or lost transactions, provided that such policies: (a) do not discriminate among members; and (b) are rationally related to a legitimate business objective of the Association. "
DATED at Ottawa, this ___ day of _____, 1998. SIGNED on behalf of the Tribunal by the presiding judicial member.
10576593.01