Backgrounder: Competition Bureau reaches agreement with Sobeys’ parent company Empire to address grocery property controls
Backgrounder
September 22, 2026– GATINEAU (Québec), Competition Bureau
The Competition Bureau has reached an agreement with Empire to address concerns related to its use of property controls in 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.
The agreement is part of the Bureau's ongoing efforts to address property controls and other barriers that can harm competition in Canada’s grocery sector.
Property controls are restrictions that limit how a property can be used by others.
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 business that compete with a previous owner.
Exclusivity clauses are generally found in commercial leases. They prevent landlords from leasing space to another tenant that competes with an existing tenant or limit what or how products can be sold.
Empire’s obligations
On July 21, 2026, Empire announced commitments to change its use of property controls in the Canadian grocery sector. These commitments are now reflected in a consent agreement registered with the Competition Tribunal, making them legally binding and enforceable.
Under the agreement, Empire will not:
- Restrictive covenants
- Enforce existing restrictive covenants.
- Create new restrictive covenants.
- Ask others to create restrictive covenants that benefit Empire.
- Exclusivity clauses
- Enforce or create exclusivity clauses that restrict specialty food retailers, such as bakeries, butchers, pharmacies, dollar stores, and convenience stores.
- Enforce or create radius clauses that prevent food retailers from operating on other properties near an Empire grocery development.
- Enforce existing exclusivity clauses in its grocery store leases in 19 local markets identified in the consent agreement.
Removing existing property controls
Although Empire cannot enforce certain property controls under this agreement, some restrictions may still appear in existing property records, leases or agreements.
Businesses, property owners and other interested parties who wish to have a property control formally removed may contact Empire. The consent agreement includes a process for Empire to consider and respond to these requests.
The Bureau’s work on property controls
- 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 June 2025, following a public consultation, the Bureau published updated guidance on competitor property controls. In addition, the Bureau announced that it is monitoring Loblaw’s commitment to end its use of property controls in Canada.
- In June 2026, the Bureau announced that it obtained court orders to advance its investigation into Empire’s use of property controls in Canada.
- The Bureau’s investigation into the use of property controls by other grocers is ongoing, and it continues to monitor the industry closely. Canadians are urged to report property controls that may be anti-competitive using the online complaint form.
Information for businesses
Property controls can raise serious competition concerns. The Competition Bureau encourages Canadian businesses to review their property control practices to ensure that they comply with the law.
More information on the Bureau’s enforcement approach to competitor property controls is available in the guidance.