Empire Company Agrees to End Restrictive Property Controls in Deal with Competition Bureau
Empire Company Limited, parent of Sobeys and other grocery chains, has reached an agreement with Canada's Competition Bureau to cease using restrictive property controls that limit competition. The deal follows a 2024 investigation into anti-competitive practices by major grocers.
Empire Company Limited, the parent company of Sobeys, Safeway, Freshco, IGA, and other grocery chains, has reached an agreement with Canada's Competition Bureau to stop using restrictive property controls that limit competition. This development follows a 2024 investigation into anti-competitive practices employed by major Canadian grocers.
The investigation focused on how large retailers use land title documents to restrict nearby businesses. These "property controls" include exclusivity clauses that prevent rival stores from opening in close proximity, as well as restrictive covenants that ban adjacent businesses—such as pet stores or gyms—from selling specific food items. Land title documents revealed restrictions within a five-kilometer radius of grocery giants prohibiting the sale of perishable foods and steep discounts on national brands.
This move by Empire mirrors previous actions taken by Loblaw, another major grocery retailer. Following the initial probe, Loblaw committed in 2025 to cease enforcing restrictive covenants and to limit its use of exclusivity clauses. The federal government granted the Competition Bureau increased authority earlier this year to enforce rules regarding these property controls.
Under the new agreement, Empire is no longer permitted to restrict competition through land titles via restrictive covenants. However, the company retains limited rights to use exclusivity clauses in specific circumstances where they are deemed pro-competitive. For example, such clauses may be justified if they ensure a key tenant for a new shopping plaza. The Competition Bureau identified 19 scenarios involving Empire-owned land where exclusivity clauses were considered potentially justified under these conditions.
The impacts of this agreement suggest potential benefits for consumers, including lower prices, more choice, and innovation due to increased competition. Additionally, independent grocers, butchers, and bakeries will find it easier to open locations near existing Empire stores. While Empire has settled its dispute, the Competition Bureau continues to monitor Loblaw's compliance with its own commitments.