Competition Bureau investigates grocery retailers' property controls in Canada

The Competition Bureau in Canada is investigating the impact of property controls by grocery retailers, particularly Sobeys and Loblaw, on market competition. This investigation, initiated on October 21, 2024, arises from concerns that property controls may inhibit competition by making it difficult for new grocery stores to enter the market. The Bureau has issued a call for information from market participants, seeking to understand how these controls affect both international and domestic grocers looking to establish themselves in Canada. Property controls are restrictions that limit how commercial real estate can be used, which can prevent new grocery stores from opening or restrict existing stores from expanding their offerings. This could lead to negative consequences for consumers, such as higher prices and reduced choices in the grocery sector. The Bureau is particularly interested in collecting input on specific instances where these controls have hindered competition within the industry. The agencies aim to gather insights that will inform their ongoing investigations into Sobeys and Loblaw's practices. Although the investigations have seen the Bureau obtain two court orders in June 2024 to advance their work, it remains important to emphasize that no wrongdoing has been concluded as of yet. This consultation is a vital step in the Bureau's efforts to promote fair competition and protect consumer interests. Through this consultation, the Bureau encourages stakeholders in the grocery and real estate sectors to confidentially share their experiences with property controls, contributing to a fuller understanding of the competitive landscape in Canada's grocery industry.