The recent entry of online retailer Amazon.com
into the Canadian e-tailing scene through the start of the Amazon.ca
website has caused some controversy. The Canadian Booksellers Association
claims that the company is violating Canadian laws that restrict foreign ownership of booksellers. This claim has led to an examination by the Department of Canadian Heritage
to see if Amazon is breaching the Investment Canada Act
For its part, Amazon claims that the Canadian ownership laws do not apply to it since it remains a U.S. company with no Canadian presence. Amazon's founder and CEO, Jeff Bezos, has even accused the company's Canadian competitor, Indigo Books & Music Inc., of political meddling.
Amazon's argument may have some merit in that the giant e-tailer's Canadian operations are carried out via outsourcing and the whole presence of the online retailer in Canada is confined to a single manager.
Canadian Booksellers Association
Department of Canadian Heritage
To view a copy of the Investment Canada Act, visit:
Disclaimer: This Newsletter is intended to provide readers with general information on legal developments in the areas of e-commerce, information technology and intellectual property. It is not intended to be a complete statement of the law, nor is it intended to provide legal advice. No person should act or rely upon the information contained in this newsletter without seeking legal advice.
E-TIPS is a registered trade-mark of Deeth Williams Wall LLP.