Loblaw’s public commitment to change its practices relating to restrictive covenants and exclusivity clauses marks a key milestone for competition in the Canadian grocery industry. The details of Loblaw’s commitment are available in the backgrounder.

“The steps Loblaw is taking towards eliminating property controls will allow for healthier competition in the grocery sector. More competition can drive lower prices, increased innovation and more convenience for consumers. I am encouraged by Loblaw’s response to the changes to the law and our concerns, and urge all Canadian businesses to review their practices to ensure that they comply with the law.”

Matthew Boswell,
Commissioner of Competition

• Property controls are restrictions that limit how a property can be used by others. In the grocery industry, property controls may harm competition by making it difficult for businesses to open new stores, or by limiting the food products that can be sold in a food retailer’s store.

• There are two types of property controls: exclusivity clauses and restrictive covenants.

  • Exclusivity clauses are generally found in commercial leases. They prohibit the landlord from leasing space to another tenant that competes with the existing tenant.
  • Restrictive covenants are restrictions on land that prevent a purchaser or owner of a commercial property from using the location to operate or lease to operators of certain types of businesses.

• In June 2023, the Bureau published its grocery market study, which concluded that property controls can limit competition from new grocers and can deny consumers the benefits of competition including lower prices, greater choice and increased innovation.

• In June 2024, the Bureau announced that it obtained two court orders to advance its investigations into the use of property controls by Sobeys’ and Loblaw’s parent companies.

• In January 2025, the Bureau announced that Sobeys’ parent company, Empire, agreed to remove a property control that restricted retail grocery store competition in Crowsnest Pass, Alberta.

• Earlier this month, following a public consultation, the Bureau published updated guidance on competitor property controls.

Related products

• Backgrounder: The Competition Bureau is monitoring Loblaw’s recent commitment towards eliminating property controls in Canada

Associated links

• Competition Bureau takes action to protect competition in the grocery industry in an Alberta community
• Competition Bureau seeks information from market participants on property controls to advance investigations
• Competition Bureau advances investigations into Sobeys and Loblaw’s use of property controls
• Competition Bureau seeks feedback on competitor property controls guidance
• Competitor property controls and the Competition Act
• Retail Grocery Market Study
• Abuse of dominance

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Le Bureau de la concurrence est un organisme indépendant d’application de la loi qui protège la concurrence et en fait la promotion au bénéfice des consommateurs et des entreprises du Canada. La concurrence favorise la baisse des prix et l’innovation tout en alimentant la croissance économique.