Canada’s Competition Bureau has struck a deal with Empire, the parent company of Sobey’s, to restrict or cease using property controls following concerns of anti-competitive behavior. These controls, embedded in land titles, can hinder rival grocery store openings nearby and limit the sale of certain food items at neighboring retailers.
Empire Company Limited, which owns various grocery chains, has faced pressure to eliminate property controls from the Competition Bureau. This initiative stemmed from an investigation in 2024 into the use of property controls by major grocery players like Loblaw and Sobeys.
Economist Jim Stanford highlighted the significance of this agreement, noting that Sobeys had initially resisted abandoning these practices. The bureau’s scrutiny into property controls was prompted by hearings in 2023 aimed at addressing escalating grocery prices.
While Empire is now committed to curtailing the use of restrictive covenants, limited exclusivity clauses are still permissible under the new agreement. The Competition Bureau will assess exclusivity clauses on a case-by-case basis, acknowledging that certain scenarios may warrant their use to foster competition.
The recent development marks a victory for consumers and signals a shift in the grocery sector towards greater competition and innovation. The bureau intends to investigate other industry barriers and continue monitoring compliance with the new property control regulations.
