Competition Bureau seeks information from market participants on property controls to advance investigations

Bureau is examining whether property controls imposed by grocery retailers are harming competition

GATINEAU, QC, Oct. 21, 2024 /CNW/ - The Competition Bureau is inviting market participants to provide input about the use of property controls in the Canadian grocery industry.

The Bureau is examining whether property controls imposed by grocery retailers are harming competition. Property controls may shield grocery stores from competition by preventing businesses from opening a retail food store or by limiting the products competitors can sell. As a result, consumers may be denied the benefits of competition, including: lower prices, better quality and more choice.

The call-out aims to gather information on the use of property controls in the grocery industry as a whole, and to inform the Bureau's ongoing investigations into Sobeys and Loblaw. Areas of interest include:

• any instances where property controls have prevented domestic or international grocers or food retailers from opening a store in Canada,
• any instances where property controls have restricted the operations of a food retailer by, for example, limiting the sale of specific food products, and
• the benefits and drawbacks of property controls for food retailers, landowners or landlords.

The Bureau encourages market participants in the food retail and real estate sectors to confidentially share their experiences by emailing [email protected]. For more information on how to submit information, please visit the Call-out for information about property controls in the Canadian grocery industry web page.

Quick facts

• Competitor property controls are restrictions on the use of commercial real estate. They can harm competition by making it difficult, or even impossible, for businesses to open new stores.
• In June 2024, the Bureau announced that it obtained two court orders to advance its investigations into the use of property controls by Sobeys' and Loblaw's parent companies. The investigations are ongoing and there is no conclusion of wrongdoing at this time.
• In August 2024, following significant changes made to modernize the Competition Act, the Bureau invited Canadians to provide feedback on its preliminary enforcement approach to property controls. This consultation is now closed, and is not related to the call-out for information announced today.

Related products

• Call-out for information about property controls in the Canadian grocery industry
• Information Bulletin on Communication of Confidential Information Under the Competition Act.

Associated links

• Competition Bureau advances investigations into Sobeys and Loblaw's use of property controls
• Competition Bureau seeks feedback on competitor property controls guidance
• Retail Grocery Market Study
• Abuse of dominance

General information:
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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

SOURCE Competition Bureau

Contacts: Media inquiries: Media Relations, Email: [email protected]