The Competition Bureau is investigating the use of restrictive real estate clauses in the Canadian grocery sector.
Deputy commissioner Anthony Durocher told a House of Commons committee studying food prices that these measures, often called "property controls," can be a major barrier to entry and expansion in the Canadian marketplace.
"We are actively pursuing an enforcement investigation in the grocery sector relating to the use of property controls," Durocher told MPs on Thursday.
The Competition Bureau confirmed the investigation via email, noting there's no conclusion of wrongdoing at this time.
In the Bureau's June 2023 report on competition in the grocery sector, it described property controls as clauses added to a lease or deed that limit how real estate can be used by competitors.
This can include limiting the kinds of stores that can open in a mall, or limiting the kind of store that’s allowed to open in that location after a tenant leaves the property.
For example, if a grocery store is moving to a nearby location, the property control clause could prevent a competitor from entering the old store. That might be a rival grocer or even a more specific business such as a bakery.
The clause might also limit other stores from selling similar products.
"The effect is they can ultimately just make it harder for a competitor to get into the same space," explained associate deputy commissioner Bradley Callaghan at the committee meeting.
"It could be the same commercial mall, but it also could cover a wider geographic area."
The Bureau's report recommended that governments limit use of the clauses in the sector, saying they make it harder for new supermarkets to open, and can curb competition.
Durocher said that recent amendments to the Competition Act have given the Bureau more tools to protect and promote competition, particularly through Bill C-56, which became law in December.
"The Bureau is committed to using the new tools made available through these amendments wherever necessary to protect competition," said Durocher.
Keldon Bester, executive director of the Canadian Anti-Monopoly Project, welcomed the announcement of an investigation by the Bureau.
“I’m glad to see the bureau moving quickly,†he said.
One key amendment in C-56 broadens the scope of the kinds of agreements the Bureau can look into, said Bester.
Previously, the Competition Act had provisions against competitors making agreements that could prevent or lessen competition in a market. Now, those provisions include agreements that aren't just between two competitors -- such as an agreement between a grocer and its landlord, explained Bester.
Property controls also make it more attractive for companies to consolidate as a way of expanding, said Bester.
"If the prime real estate is wrapped up in these kinds of agreements, if a company wants to expand, they are encouraged to buy up and reduce competition," he said.
The bar will be high for the Bureau to prove that such clauses are being used on a widespread basis, and that their widespread use is hurting competition, said Michael Osborne, chair of the Canadian competition practice at law firm Cozen O'Connor.
“It’s not an easy case to make, nor should it be,†he said.
“The Competition Bureau must still prove that, overall, it causes a substantial lessening or prevention of competition.
Durocher told MPs that property controls can be an obstacle both for independent grocery stores and chains looking to expand, as well as for foreign players to enter the Canadian market.
"That is why one of our recommendations in the report, and this is something that a number of other countries have done, is to consider limiting their use or banning them altogether in the grocery sector, because they can be harmful to competition," he said.
Industry Minister Francois-Philippe Champagne recently said he's been trying to attract foreign grocers to enter Canada as a way of boosting competition.
Champagne did not provide a comment on the Bureau's investigation.
If the bureau finds that property control agreements in Canadian grocery are limiting competition, it can make its findings public and communicate that these kinds of agreements are "no longer acceptable," said Bester. And if Bill C-59’s further amendments to the Act are passed, it will also have the power to levy fines over such agreements, he added.
But it would also be good for governments to follow that up with legislation restricting such agreements, Bester said.
"What we really need to be doing in Canada, at a broad level, is changing what the business as usual standard is," he said.
"By doing that -- and you do need the law to do that -- we can actually get more competition out of existing players."
This report by The Canadian Press was first published Feb. 8, 2024
Republicans on Sunday sought to distance themselves from Donald Trump's latest insults of Democratic nominee Kamala Harris during a rambling weekend rally in Wisconsin in which he called her 'mentally disabled.'
Two and a half years after losing her best friend and first love to suicide, Brooke Ford shared her story of grief and resilience at the CMHA Windsor-Essex Suicide Awareness Walk.
An Ottawa driver has been charged with stunt driving after being caught going 154 km/h on Highway 417, according to the Ontario Provincial Police (OPP).
Migrant groups are pushing the federal government to reverse its cap on international study permits and tightening post-graduate work permit qualifications, claiming it will leave many students 'in limbo.'
John Ashton, the veteran character actor who memorably played the gruff but lovable police detective John Taggart in the 'Beverly Hills Cop' films, has died. He was 76.
WeightWatchers CEO Sima Sistani, who pushed the company into embracing weight-loss drugs, is leaving the position after a two-and-a-half year stint.
A fire at a Georgia chemical plant apparently caused by a sprinkler head malfunction Sunday morning is forcing evacuations and road closures in the area, according to Rockdale County officials.
The government has just weeks to decide if it will meet the $16-billion demand from the Bloc Québécois to stave off an election for a few more months, but the stipulation may be at odds with the political and fiscal plans of the Liberals.
The Tax-Free Savings Account can be a powerful savings tool and investment vehicle. Financial contributor Christopher Liew explains how they work and how to take full advantage of them so you can reach your financial goals faster.
A commemorative rally marking the fourth anniversary of Joyce Echaquan’s death will take place in Ville-Marie on Saturday afternoon.
Alberta's premier spoke to calls for an outside, independent investigation into the death of Jon Wells during an incident involving Calgary police last week.
The union representing longshore workers at the Port of Montreal says work at two terminals could come to a standstill next week as the union served a 72-hour strike notice today.
A child was sent to hospital after being attacked by a coyote in northwest Calgary.
Two and a half years after losing her best friend and first love to suicide, Brooke Ford shared her story of grief and resilience at the CMHA Windsor-Essex Suicide Awareness Walk.
Toronto police are urging anyone with information, including video footage, to contact them after a man was fatally stabbed in north Scarborough on Saturday evening.
A fire at a Georgia chemical plant apparently caused by a sprinkler head malfunction Sunday morning is forcing evacuations and road closures in the area, according to Rockdale County officials.
U.S. President Joe Biden said he would speak with Israeli Prime Minister Benjamin Netanyahu, and believes that an all-out war in the Middle East must be avoided.
Tim Walz and JD Vance might have the chance to reshape the political landscape Tuesday in their first and only debate.
Riding in a black SUV with tinted windows, lawyer Mariel Colon rolls up to the gates of a remote mansion, strolling past a security guard side-by-side with Emma Coronel, the wife of notorious drug lord JoaquÃn 'El Chapo' Guzman.
Newly emerged film footage of U.S. President John F. Kennedy's motorcade speeding down a Dallas freeway toward a hospital after he was fatally wounded sold at auction Saturday for US$137,500.
Republicans on Sunday sought to distance themselves from Donald Trump's latest insults of Democratic nominee Kamala Harris during a rambling weekend rally in Wisconsin in which he called her 'mentally disabled.'
The Liberal government is announcing more details on its existing strategy and funding to fight hate crimes.
Migrant groups are pushing the federal government to reverse its cap on international study permits and tightening post-graduate work permit qualifications, claiming it will leave many students 'in limbo.'
The government has just weeks to decide if it will meet the $16-billion demand from the Bloc Québécois to stave off an election for a few more months, but the stipulation may be at odds with the political and fiscal plans of the Liberals.
A man from Alberta has been at the Medipal International Hospital in Kampala, Uganda for over two months with a hefty medical bill. He says he can’t leave until it’s been paid for.
More than 550 symptomatic people responded to an online questionnaire about a gastrointestinal illness at a Prince Edward Island shellfish festival last weekend.
A partial masking mandate has returned to Nova Scotia hospitals and provincially run healthcare facilities for visitors and healthcare workers.
Canadian innovators and technical leaders gathered in Ottawa Thursday to demonstrate the latest cutting-edge technology.
SpaceX launched a rescue mission for the two stuck astronauts at the International Space Station on Saturday, sending up a downsized crew to bring them home but not until next year.
Trees haven't grown on the Falkland Islands for thousands of years. But tree trunks and branches preserved in peat suggest the islands were once home to a forest.
John Ashton, the veteran character actor who memorably played the gruff but lovable police detective John Taggart in the 'Beverly Hills Cop' films, has died. He was 76.
Francis Ford Coppola’s decades-in-the-making, self-financed epic 'Megalopolis' flopped with moviegoers, while the acclaimed DreamWorks Animation family film 'The Wild Robot' soared to No. 1 at the weekend box office.
Given the sudden popularity of Moo Deng, the Thai national treasure whose name roughly translates as 'bouncy pork,' it was only a matter of time before someone turned her into a digital asset.
A strike by grain terminal workers at the Port of Metro Vancouver has ended, their employer announced Friday night.
When Annie Korver sits down with a new corporate or small business client, she encourages them to focus first on the 'truth' part of Truth and Reconciliation.
The U.S. Department of Transportation said Friday it had fined Air Canada US$250,000 for operating flights in 2022 and 2023 in prohibited Iraqi airspace.
While libraries might be stereotyped by some as boring or outdated, they’ve become popular digital destinations for young viewers on TikTok.
The Tax-Free Savings Account can be a powerful savings tool and investment vehicle. Financial contributor Christopher Liew explains how they work and how to take full advantage of them so you can reach your financial goals faster.
Matt Perrault has shipped animals in and out of Canada on behalf of owners for more than two decades, handling creatures ranging from birds to bearded dragons, rabbits and ferrets.
When the key to a win is work ethic, it is not surprising to see Mattias Ekholm rise to the occasion. Ekholm had a goal and two assists as the Edmonton Oilers snapped a three-game skid with a 5-4 victory over the Seattle Kraken on Saturday.
On an eventful Saturday at the Presidents Cup, the U.S. took an 11-7 lead over an International team that saw big performances from the world's No. 1 ranked golfer, Scottie Scheffler.
The Toronto Raptors have confirmed that Vince Carter's No. 15 will be the first number to be retired by the NBA franchise.
A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.
A U.S. driver somehow squeezed her vehicle through a parkade hallway at a Metro Vancouver casino Thursday, before getting stuck at an elevator bank.
More than 12,000 vehicles in Canada are included in two separate recalls by Toyota Motor Corp. and Mazda.
A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.
When a group of B.C. filmmakers set out on a small fishing boat near Powell River last week, they hoped to capture some video for a documentary on humpback whales. What happened next blew their minds.
A pizza chain in Edmonton claims to have the world's largest deliverable pizza.
Sarah McLachlan is returning to her hometown of Halifax in November.
Wayne MacKay is still playing basketball twice at Mount Allison University at 87 years old.
A man from a small rural Alberta town is making music that makes people laugh.
An Indigenous artist has a buyer-beware warning ahead of Sept. 30, the National Day for Truth and Reconciliation.
Police are looking to the public for help after thieves broke into a Lethbridge ice creamery, stealing from the store.
An ordinary day on the job delivering mail in East Elmwood quickly turned dramatic for Canada Post letter carrier Jared Plourde. A woman on his route was calling out in distress.
British Columbia saw a rare unanimous vote in its legislature in October 2019, when members passed a law adopting the United Nations Declarations on the Rights of Indigenous Peoples, setting out standards including free, prior and informed consent for actions affecting them.
As the weather cools and birds migrate to warmer climates, a wildlife rescue in B.C. has seen a "tragic surge" in animals hurt or killed after flying into windows.
Here are five things to do in Vancouver this weekend to mark the National Day for Truth and Reconciliation.
A large crowd of people hoping to collect a piece of Toronto history gathered outside the ;Leslieville dollhouse' Sunday, as the new owners of the beloved east-end home gave away the dolls, toys, knick-knacks, and teddy bears that covered the property.
A grassroots organization is calling on the provincial government to reopen the Ontario Science Centre after it was abruptly closed in June following the discovery of structural issues in the building.
One person was injured in a stabbing at Moss Park early Sunday morning, Toronto police say.
A child was sent to hospital after being attacked by a coyote in northwest Calgary.
Alberta's premier spoke to calls for an outside, independent investigation into the death of Jon Wells during an incident involving Calgary police last week.
Migrant groups are pushing the federal government to reverse its cap on international study permits and tightening post-graduate work permit qualifications, claiming it will leave many students 'in limbo.'
A 23-year-old man sustained serious, but non-life-threatening injuries following a dispute with another man Saturday night at a bar in Gatineau, Que., police say.
A near perfect replica of Lighting McQueen came to Hardy Park in Brockville, Ont. for a meet and greet.
With CTV broadcasting NFL football games on Sundays this season, Â鶹´«Ã½ at Six with Austin Lee will be broadcasting live on our website and the Â鶹´«Ã½ App.
Provincial police (SQ) say a head-on crash on Highway 30 in Candiac has left two people dead.
The provincial Crown corporation in charge of liquor sales in Quebec says a computer issue resulted in all its products being temporarily listed at 30 per cent off on its website.
A new Crave original series inspired by Leonard Cohen's iconic song "So Long, Marianne" delves into the complex love story between the renowned songwriter and his muse, Marianne Ihlen.
Thousands of kilometres of rural roads and highways in Alberta are nearing the end of their useful lives, and new research says the province is quickly running out of time to make the repairs needed to preserve them.
This Monday, Sept. 30 is the National Day for Truth and Reconciliation (NDTR), a federal statutory holiday and day of remembrance for the Indigenous children who never came home from Canadian residential schools, as well as those who survived them.
Kim Ruether lifted her son's eyelid and saw his still, dilated pupil staring at the ceiling as he lay on a stretcher in a northwestern Alberta hospital hallway a decade ago. She says she didn't need a doctor to tell her the boy was dead.
A mother in a community where the cost of living is one of the highest in the country says grocery prices are 'inhumane' and retailers are putting profits ahead of people’s basic human right to food.
Women entrepreneurs from across New Brunswick were front and centre at a ‘pop-up shop’ showcase on Sunday.
The East Coast Ukrainian Festival kicked off at Pier 21 in Halifax on Saturday, celebrating Ukrainian culture and traditions.
As the temperatures begin to drop and the leaves change colour, the time for fall suppers has returned in Manitoba.
Hundreds gathered in Winnipeg’s Memorial Park Saturday afternoon in a solemn ceremony honouring the lives of fallen firefighters.
Vintage collectors from all corners of Canada gathered at Assiniboia Downs Saturday to shop and show off a variety of trinkets and treasures.
The National Day for Truth and Reconciliation takes place on Sept. 30 every year and is meant to recognize residential school survivors and their families.
The Town of Lumsden held their ninth annual Scarecrow festival Saturday.
The Saskatchewan Roughriders moved into second place in the CFL's West Division with a 29-16 victory over the Ottawa Redblacks on Saturday.
People in Guelph may notice a new addition at the entrance to Franchetto Park in Guelph.
A young motorcyclist has been taken to an out-of-region hospital after a single vehicle crash in Woolwich Township.
A grassroots organization is calling on the provincial government to reopen the Ontario Science Centre after it was abruptly closed in June following the discovery of structural issues in the building.
RCMP are seeking tips after a church on Main Street in Loon Lake burned to the ground.
Saskatoon Police Service has arrested a suspect in connection with two separate stabbing incidents that occurred earlier this month.
Minister of Health Everett Hindley wrote to healthcare provider unions on Friday inviting them to join a nursing task force, something the government previously said no to.
A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.
The CEO of the Ottawa Mission is responding to controversial comments made this week by Premier Doug Ford about those living in homeless encampments that received swift blowback from advocates.
The government has just weeks to decide if it will meet the $16-billion demand from the Bloc Québécois to stave off an election for a few more months, but the stipulation may be at odds with the political and fiscal plans of the Liberals.
On Saturday night at her parents’ home in Delaware, Ont. the Olympic bronze medallist in pole vault welcomed everyone who played a role in getting her to the podium in Paris.
The fourth annual National Day for Truth and Reconciliation in Canada is on Monday, Sept. 30.
On Saturday, just before 10:00 p.m., police were called to the intersection of Richmond and Huron Streets for a welfare check.
A pedestrian has died after reportedly getting struck by an OPP cruiser in Bala early Sunday morning.
OPP officers arrested a suspect while he was in the middle of a possible theft Sunday morning in Wasaga Beach.
Members of the Southern Georgian Bay OPP and the Canadian Anti-Fraud Centre (CAFC) are sounding the alarm on a rising number of online and phone scams targeting residents.
Two and a half years after losing her best friend and first love to suicide, Brooke Ford shared her story of grief and resilience at the CMHA Windsor-Essex Suicide Awareness Walk.
The BSI aims to elevate Black academic excellence, promoting scholarship, mentorship, and cultural knowledge.
The fourth annual National Day for Truth and Reconciliation in Canada is on Monday, Sept. 30.
British Columbia saw a rare unanimous vote in its legislature in October 2019, when members passed a law adopting the United Nations Declarations on the Rights of Indigenous Peoples, setting out standards including free, prior and informed consent for actions affecting them.
A man was found dead in a home in the Ditidaht First Nation on Vancouver Island Saturday morning, prompting local council to ask residents to shelter in place.
For decades, Melven Jones couldn’t talk about what happened to him as a child. He didn’t even remember it.
Fire crews in Vernon, B.C., responded to a large house fire early Saturday morning.
A pair of runaway pigs are in the custody of an animal sanctuary in the Okanagan after evading police and volunteers for hours earlier this week.
The Red Bridge, a historic landmark in Kamloops, B.C., was completely destroyed by fire early Thursday morning.
The sentencing for three men convicted of helping lead and coordinate the COVID-19 protest blockade at Coutts, Alta., in 2022 has been delayed.
A 10-year-old boy from Lethbridge is being praised as a hero after a routine summer outing at the pool nearly turned tragic for his friend.
A man and woman have been charged after a Lethbridge ice creamery was broken into earlier this week. Staff arrived at Cookie Crimes, in the 300 block of Sixth Street South, just before 5:30 a.m. on Monday to discover the front window broken.
Sault residents may notice some commotion on the Algoma University campus over the next two weeks as a team conducts an archaeological search.
The Pride crosswalk in downtown Sault Ste. Marie, Ont., has been hit by vandalism for the second time in less than three months.
Despite a lead at mid-game in front of a near-capacity home crowd, the Sudbury Wolves dropped their first game of their OHL regular season to Barrie, 3-1.
A mother in a community where the cost of living is one of the highest in the country says grocery prices are 'inhumane' and retailers are putting profits ahead of people’s basic human right to food.
A soccer game in England on Tuesday night drove a spike in online traffic across the Atlantic to a website launched by the Newfoundland and Labrador government.
Newfoundland and Labrador sponsored a minor football team in England, now they’re about to play one of the biggest clubs in European soccer.
The Shopping Trends team is independent of the journalists at Â鶹´«Ã½. We may earn a commission when you use our links to shop. Read about us.
