Competition Bureau probing conduct of Loblaws, Sobeys owners. Why?

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Competition Bureau News

Loblaws,Sobeys,Canada

Canada's Competition Bureau has launched investigations into the parent companies of Loblaws and Sobeys for alleged anticompetitive conduct, court documents reveal.

The Federal Court documents show the Commissioner of Competition launched the probes on March 1, saying there’s reason to believe the firms’ use of so-called property controls limits retail grocery competition.

Industry minister François-Philippe Champagne has said he’s seeking a foreign grocer to strengthen competition in the Canadian market. “Restrictive covenants are very common in many industries, including retail. They help support property development investments, encouraging opening of new stores and capital risk-taking,” she said.Here’s why one B.C. centenarian made Chinese Canadian history

The documents show the inquiries are zeroing in on two types of property controls in contracts and commercial leases used by the grocery retailers “in many markets in Canada.” The property controls, the commissioner says, may give the companies “the ability to exclude actual or potential competitors from selling food products within certain geographic areas or to dictate the terms upon which they carry on business.”“This is a novel case,” said Michael Osborne, chair of the Canadian competition practice at law firm Cozen O’Connor.

 

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