The Competition Bureau of Canada has successfully negotiated an agreement with Empire, the parent company of several grocery chains including Sobeys, to tackle issues related to property controls that hinder competition in the grocery sector.

Property controls, which restrict how commercial real estate can be utilized for food sales, have been identified as barriers that prevent new businesses from entering the market and limit consumer choice. The Bureau's investigation revealed that these controls can significantly reduce competition in local markets across Canada.

As part of the agreement, Empire has committed to no longer enforce existing restrictive covenants, refrain from entering into new restrictive covenants, and limit the use of exclusivity clauses. This consent agreement, which is registered with the Competition Tribunal, makes these commitments legally binding and enforceable.

The Bureau believes that this agreement will enhance competition in the grocery sector, allowing for new entrants and providing consumers with more choices and potentially lower prices. The Bureau continues to monitor the grocery industry and is investigating the use of property controls by other retailers.