Canada’s Competition Bureau Reaches Binding Agreement with Empire Co. to End Restrictive Grocery Property Controls
The Competition Bureau of Canada has finalized a legally binding consent agreement with Empire Co. Ltd., the parent company of Sobeys and other grocery banners, to address anti-competitive property controls in the Canadian grocery industry.
On September 22, 2026, the Competition Bureau of Canada reached a legally binding consent agreement with Empire Co. Ltd. The agreement addresses concerns related to the use of property controls within the Canadian grocery industry. Empire is the parent company of multiple grocery banners, including Sobeys, Farm Boy, Safeway, IGA, Foodland, FreshCo, Marché Bonichoix, and Les Marchés Tradition.
Under the terms of the consent agreement, which was registered with the Competition Tribunal, Empire agreed to no longer enforce existing restrictive covenants, enter into new ones, or request others to establish them for its benefit. Additionally, Empire agreed to limit its use of exclusivity clauses, provisions that prohibit landlords from leasing space to competing tenants. The agreement formalizes commitments Empire made in July 2026 regarding these property controls, making them legally binding and enforceable.
The deal identifies 19 local markets where Empire will not enforce existing exclusivity clauses. Businesses and property owners can contact Empire to have existing property controls formally removed, as some restrictions may still appear in records despite the agreement.
Jeanne Pratt, Interim Commissioner of Competition, stated that the agreement removes barriers to competition and supports new entry and increased competition for retailers selling everyday essential items. This action follows a June 2023 grocery market study by the Competition Bureau, which concluded that property controls limit competition and deny consumers benefits such as lower prices and greater choice.
Empire spokesperson Sarah Dawson stated that the grocer is pleased to have resolved the matter of property controls with the Competition Bureau. However, Jennifer Quaid, a professor at the University of Ottawa’s Faculty of Law, noted that while the agreement is a positive step, it is not a "magic bullet" for addressing price concerns. Recent data shows store-bought food prices increased by 2.8% in August 2026 compared to a year earlier, following a 3.1% increase in July 2026.
The Competition Bureau continues to investigate the use of similar property controls by other grocers. The impacts of this specific agreement include the removal of barriers for businesses looking to enter or expand in the food retail sector, potential for lower prices and increased innovation for Canadian consumers, and increased certainty for market participants regarding property controls.