Under the Competition Act, what action can the competition tribunal take if a merger lessens competition?

Under the Competition Act, if a merger is found to substantially lessen competition, the competition tribunal has the authority to intervene and take corrective actions. One of the most significant actions is to dissolve the merger, which means that the tribunal can require the companies involved to unwind the transaction to restore the competitive conditions that existed prior to the merger. This measures ensure that no entity can dominate the market to the detriment of consumers and maintain healthy competition within the sector.

In instances where the tribunal finds a merger problematic, it prioritizes restoring competitive balance as a remedy. The other options do not align with the act's primary focus on maintaining competition. Increasing shareholder dividends would not address competitive issues, mandating mergers to proceed without alterations would contradict the tribunal's purpose of promoting competition, and restricting company expansions wouldn't directly target the anti-competitive effects of the merger itself. Thus, the action to dissolve the merger is the most appropriate and effective way to preserve competition.