The Competition Bureau is inviting stakeholders in the Canadian grocery and commercial real estate sectors to provide input on the use of property controls by grocery retailers.

Competitor property controls are contract clauses that restrict the use of commercial real estate.

The bureau is investigating whether these controls are negatively affecting competition in the grocery industry, potentially leading to higher prices, limited choice, and reduced quality for consumers.

Property controls may prevent competing businesses from opening new food stores or restrict the types of products competitors can sell, says the bureau. The agency said it is particularly focused on gathering information about the impact of these practices on competition, as part of an ongoing investigation into grocery retailers Sobeys and Loblaw.

The bureau is seeking input on several key areas, including:

• Instances where property controls have blocked domestic or international grocers from opening stores in Canada.
• Situations where property controls have restricted food retailers’ operations, such as limiting the sale of specific food products.
• The benefits and drawbacks of property controls from the perspective of food retailers, landowners, or landlords.

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,” said the bureau.

In August, following significant changes made to modernize the Competition Act, the bureau invited Canadians to provide feedback on its preliminary enforcement approach to property controls. That consultation has closed and is not related to the latest call-out.

The bureau is encouraging members of the food retail and commercial real estate sectors to share their experiences with property controls confidentially by emailing [email protected].