#grocery-stores

Canada's Competition Bureau has initiated legal proceedings against major grocery retailers Loblaw and Sobeys, challenging their use of restrictive property controls. The Bureau alleges these covenants, which limit or ban rival grocers from operating in certain locations, are anti-competitive and contribute to higher food prices for Canadians. By filing an application with the Competition Tribunal, the watchdog aims to strike down these clauses and foster a more competitive grocery market. This landmark case represents a significant federal effort to address the long-standing issue of market concentration and affordability in Canada's food retail sector.

Canada's Competition Bureau has launched legal action against major grocery retailers Loblaw and Sobeys, alleging their use of restrictive covenants in leasing agreements stifles competition. The Bureau claims these "property controls" are used to block rival supermarkets from opening in proximity, limiting consumer choice and keeping prices artificially high. This move, filed with the Competition Tribunal, seeks to end these long-standing practices and open the market to new entrants. The outcome could significantly reshape the landscape of Canadian retail and address persistent concerns over high food inflation.

Canada's Competition Bureau is intensifying its investigation into the country's major grocery retailers, including Loblaw and Sobeys, over their use of 'property controls.' These restrictive covenants in real estate agreements can prevent rival supermarkets from opening in nearby locations, potentially for decades. The Bureau argues these practices stifle competition, limit consumer choice, and contribute to high food prices. In a significant move, the agency has sought a court order to compel the grocery giants to produce documents, signaling a serious effort to dismantle what it considers a key barrier to a more competitive market.