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Competition Bureau Wins Court Orders to Expand Probe of Sobeys Owner’s Property Controls

The orders let the bureau compel documents and testimony nationwide to determine whether lease and deed clauses keep rivals out and harm grocery shoppers.

Shoppers at a west-end Toronto Sobeys grocery store, Sunday, June 26, 2023. THE CANADIAN PRESS/Graeme Roy
The Competition Bureau of Canada announced Monday it has taken a step forward in its investigation into competition by grocery giant Sobeys.
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Overview

  • The Competition Bureau obtained Federal Court orders Monday requiring Empire Company Limited to produce records, written information and oral testimony as part of a widened national inquiry.
  • The probe will examine how Empire, the parent of Sobeys, Farm Boy, Safeway, IGA, Foodland and FreshCo, negotiates property-control clauses that can limit which retailers may operate on a site.
  • The investigation is active and has not concluded any wrongdoing but the bureau says these clauses can reduce competition, which can lead to higher prices, lower quality and reduced local access to groceries.
  • The bureau’s move builds on an earlier Halifax-focused order from 2024 and follows reporting that uncovered dozens of property-control agreements across Canada and industry shifts such as Walmart ending the practice.
  • Legal and market experts stress fixing these contractual barriers is complex because many controls are embedded in long leases or mall agreements so any consumer relief could take time to appear.