Aleph Meats Inc., a Montreal kosher meat supplier, has formally accused the Jewish Community Council of Montreal, which operates MK Kosher Certification, of using its dominant position in the kosher marketplace to prevent businesses from purchasing products certified by competing kosher agencies.
The allegations are contained in a formal demand letter dated June 20, in which the company alleges MK’s practices amount to an abuse of dominant position under Canada’s Competition Act.
According to the letter, Aleph Meats imports, prepares and distributes kosher meat certified by KSR, the Kosher Supervision of the Rabbinat under Quebec Chief Rabbi David Sabbah. The company argues that KSR is a legitimate kosher certification and alleges that businesses operating under MK supervision are effectively prevented from purchasing or selling products carrying competing kosher certifications.
The company further alleges that grocery stores, slaughterhouses, caterers and event venues risk losing their MK certification if they do business with suppliers carrying other kosher certifications.
It also claims slaughterhouses have been discouraged from selling meat to Aleph Meats, preventing the company from accessing much of Montreal’s kosher marketplace. Those allegations have not been proven in court.
Aleph Meats entered Montreal’s kosher market earlier this year after opening in the former J&R Kosher location, positioning itself as an alternative supplier following the closure of one of the city’s best-known kosher butchers. Its products are certified by KSR rather than MK, a distinction that now sits at the centre of the dispute.
The allegations strike at the heart of Montreal’s kosher food industry. MK is the city’s largest kosher certification agency and supervises a substantial portion of Montreal’s kosher restaurants, caterers, grocery stores and food manufacturers.
While kosher certification agencies routinely establish standards governing the products used in establishments operating under their supervision, Aleph Meats argues MK’s position in the marketplace gives those standards an anti-competitive effect.
The company argues that MK’s influence within Montreal’s kosher marketplace leaves businesses with little practical choice but to comply with its requirements, creating what it describes as an abuse of dominant position under Sections 78 and 79 of the Competition Act.
In its demand letter, Aleph Meats is asking MK to remove what it describes as formal and informal restrictions preventing businesses from purchasing products certified by competing kosher agencies and to provide written confirmation within seven days that those restrictions have been lifted.
Failing that, the company says it intends to pursue legal remedies before the Competition Bureau, the Competition Tribunal or through other available legal avenues.
The letter also notes that the Competition Tribunal has the authority to impose administrative monetary penalties of up to $25 million where an abuse of dominant position is established, in addition to any damages that may be awarded.
Rabbi Saul Emanuel, Executive Director of the Jewish Community Council of Montreal, declined to comment when contacted by the Montreal Jewish News.
No proceedings have been filed before the Competition Tribunal, and the allegations contained in the demand letter have not been tested in court.
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