Competition Bureau Turns Up the Heat on Empire
Canada's Competition Bureau has obtained court orders compelling Empire Company Limited — the parent of Sobeys, IGA, and FreshCo — to hand over documents and testimony as part of a deepening investigation into so-called property controls.
These are contractual agreements baked into commercial leases or property deeds that can restrict what kinds of businesses are allowed to operate nearby. In the grocery world, that can mean a clause preventing a competing supermarket from opening in the same plaza — or even within a certain radius.
What Are Property Controls, Exactly?
Property controls aren't new, and they're not unique to Sobeys. Major grocery chains have used them for decades as a way to protect market share when anchoring a shopping centre. A landlord eager to land a major tenant like Sobeys may agree to restrict competing food retailers from the same property.
The problem, critics argue, is that these arrangements can quietly lock out competition in entire neighbourhoods — particularly in communities where one chain dominates the local real estate. That can limit consumer choice and keep prices higher than they'd otherwise be.
The Competition Bureau has been signalling for some time that it wants to scrutinize these deals more aggressively, especially following post-pandemic scrutiny of grocery prices across the country.
Why This Investigation Matters
Grocery affordability has been a pressure point for Canadian families since inflation surged in 2022. While prices have stabilized somewhat, Canadians are still paying significantly more for food than they were a few years ago — and many are frustrated that the major chains appear to have maintained strong profit margins throughout.
The Bureau's investigation into property controls is part of a broader effort to determine whether structural features of the Canadian grocery market are suppressing competition and, by extension, keeping prices artificially elevated.
If the Bureau finds that Empire's property control agreements violate the Competition Act, the company could face orders to unwind those deals — potentially opening the door for independent grocers, discount chains, or new market entrants to move into areas they've previously been blocked from.
What Comes Next
Obtaining court orders to compel document production is a significant escalation. It suggests the Bureau isn't satisfied with what it has received voluntarily and is prepared to use legal tools to get answers.
Empire has not publicly commented in detail on the investigation. The Bureau, as is standard practice, has not disclosed the specific agreements under scrutiny or the geographic markets involved.
The outcome could have ripple effects across the entire Canadian grocery sector — Loblaw and Metro have also faced questions about similar practices — and may ultimately shape what a grocery store landscape looks like in communities across the country.
Source: CBC News Business
