Competition Bureau reaches agreement with Sobeys parent company over grocery property controls

The Competition Bureau has reached an agreement with Empire Company Limited to address concerns over the use of property controls in Canada's grocery sector.

Empire is the parent company of several grocery banners, including Sobeys, Farm Boy, Safeway, IGA, Foodland, FreshCo, Marché Bonichoix and Les Marchés Tradition.

Property controls can restrict how commercial properties are used for food sales, potentially making it difficult for other businesses to open stores or sell certain products in local markets.

Under a consent agreement registered with the Competition Tribunal, Empire has agreed to make commitments that were announced in July legally binding and enforceable.

The company has agreed to no longer enforce existing restrictive covenants, enter into new restrictive covenants or ask other parties to establish restrictive covenants that benefit Empire.

Empire will also limit its use of exclusivity clauses.

The Competition Bureau says the measures are intended to remove barriers for businesses seeking to enter or expand in the Canadian food retail sector.

The agreement follows an investigation by the Bureau into the use of property controls in the grocery industry.

The Bureau says its investigation into property controls used by other grocery companies remains ongoing and that it will continue to monitor the sector.