undoubted ability to regulate the sale of alcoholic beverages
in the province.
 The appellants challenge each of these findings. They also
seek leave to appeal from the costs award in favour of the
 I would dismiss the appeal and deny leave to appeal the
costs award for the reasons that follow.
(1) Allocation of beer sales as between the LCBO and Brewers
Retail Inc. pursuant to the Framework Agreement
 The appellants argue that the regulated conduct defence
requires identifying legislative authority that specifically permits
the impugned conduct; in their view, the Liquor Control Act, as in
effect in June 2000, did not specifically authorize the alleged mar-
ket conspiracy. Further, they argue that, even if intra vires of
Ontario, retroactive legislation cannot be considered in determin-
ing the application of the regulated conduct defence. Accordingly,
they argue, the motion judge erred in dismissing their action based
on the Framework Agreement.
 I agree with the motion judge that the Liquor Control Act
authorized the impugned conduct and that the regulated conduct
defence insulated the respondents from liability under the
Competition Act arising out of the Framework Agreement.
 Below, I first provide some brief historical background
about the arrangements between the LCBO and Brewers Retail
Inc., and the Framework Agreement, and then set out the relevant portions of s. 45 of the Competition Act (as in effect in June
2000 and as amended effective March 2010). I will explain why
the motion judge concluded that s. 45 provides leeway for the
operation of the regulated conduct defence. Next, I consider the
jurisprudence regarding the nature of the authorization or direction required for the regulated conduct defence to apply, set out
the relevant portions of the Liquor Control Act in effect in June
2000, and consider those provisions in light of the applicable test.
Finally, I address the appellants’ argument that retroactive legislation cannot be considered in determining the application of the
regulated conduct defence.
(a) Alcohol distribution in Ontario and “leeway” in s. 45
of the Competition Act
 As the motion judge observed, the LCBO was established by
the government of Ontario in 1927 after the repeal of prohibition.