The Competition Bureau is welcoming Loblaw’s commitment to eliminate property controls, calling the move a “key milestone” for the grocery retailer.

“The steps Loblaw is taking towards eliminating property controls will allow for healthier competition in the grocery sector,” said Commissioner of Competition Matthew Boswell. “More competition can drive lower prices, increased innovation and more convenience for consumers.

“I am encouraged by Loblaw’s response to the changes to the law and our concerns, and urge all Canadian businesses to review their practices to ensure that they comply with the law.”

The Bureau’s investigation into property controls—such as restrictive covenants and exclusivity clauses—remains ongoing. Officials said they will continue monitoring the grocery industry, including Loblaw’s compliance, and encouraged Canadians to report potentially anti-competitive controls through its online complaint form.

Property controls can prevent or limit competing retailers from opening stores or selling certain food products. The Bureau’s 2023 grocery market study found such controls restrict competition, leading to higher prices and fewer choices for consumers.

The Bureau obtained court orders in 2024 to investigate Loblaw and Sobeys’ parent companies. In early 2025, Sobeys’ parent Empire agreed to remove a property control in Crowsnest Pass, Alta.

In newly issued guidance, the federal agency advised that such controls—like clauses limiting what kinds of stores can operate in a location—should only be used when they promote competition. And even then, they should only be used in exceptional cases.

Pictured: Loblaw-owned Superstore in Halifax.

Photo: Prashanth Bala/Shutterstock.com