Insurance Portal has learned from a recent ruling by a Quebec court that the Competition Bureau of Canada’s investigation into Applied Systems and its affiliates, including its Canadian subsidiary, has been “discontinued.” 

This information appears in a recent decision by the Quebec Superior Court. The court authorized the discontinuance of the class action lawsuit against the company on Jan. 15. 

The request for discontinuance was filed by lawyer Joey Zukran of LPC Avocats, on behalf of his client, Antreas Arevian. On Nov. 17, 2023, Arevian had submitted an application for authorization to launch a class action against Applied Systems and its Canadian subsidiary, citing the company’s dominant position in the insurance software sector. 

The application was based on a press release issued a few days earlier by the Competition Bureau of Canada, announcing the launch of its investigation into Applied, which Insurance Portal had reported on. 

After hearing the parties on March 15, 2024, the Superior Court agreed on April 2, 2024, to suspend the case pending the outcome of the Bureau’s investigation. 

In paragraph 5 of the Jan. 15, 2025 ruling, Quebec Superior Court Justice Martin Sheehan wrote: “The Competition Bureau’s investigation has since been discontinued, and no further investigative action is currently being considered.” 

As a result, the plaintiff and the legal representatives of the group he represents filed a notice of discontinuance with the court. The court ordered the plaintiff to ensure that a copy of the discontinuance is published in the Class Action Registry, as had been done for the April 2024 suspension request. 

Four months ago  

A spokesperson for the Competition Bureau confirmed to Insurance Portal that the investigation was concluded on September 24, 2024. 

“After carefully reviewing the evidence, the Bureau will not be pursuing its investigation at this time,” the spokesperson added via email. Since the Bureau’s work is conducted confidentially, no details can be provided regarding the reasons behind the closure of the investigation. 

The Bureau will continue to monitor the insurance technology sector for any conduct that may contravene the Competition Act, the spokesperson concluded. 

Applied’s response 

Applied Systems stated that it was informed of the Competition Bureau of Canada’s decision to close the investigation at the end of 2024. 

“Our teams were fully cooperative with the review process and believed that we would be successful in demonstrating our compliance with the Competition Act and resolving this investigation,” stated Rich Cohen, general counsel of Applied Systems.  

“We recognize our role in the Canadian market and will remain vigilant in our business practices and operations to support collective growth and value for the entire global insurance value chain, enabling brokerages, insurers, and partners to safeguard and protect what matters most to millions of people around the world,” added Cohen.