New Deal to End Property Controls Could Lower Grocery Prices for Canadians

The Competition Bureau announced an agreement with Empire Co. Ltd. that requires the grocery giant to strictly limit or stop using property controls, a practice the agency deemed anti‑competitive.

Property controls are clauses written into land titles. They can stop rival grocery stores from opening nearby (exclusivity clauses) or ban certain food products from being sold by nearby retailers such as pet stores, dollar stores or gyms.

Empire Company Limited owns a large network of stores, including Sobeys, Farm Boy, Safeway, Freshco, IGA and others, making it the second‑largest grocery chain in Canada.

"This is a win for consumers," said Anthony Durocher, acting senior deputy commissioner of the Competition Bureau. He added that more competition should lead to lower prices, more choice and greater innovation in grocery retail.

Land‑title documents showed that stores up to five kilometres away could not sell perishable foods such as fresh meat, dairy or produce, and nearby retailers like dollar stores were barred from offering deep discounts on national brands.

Under the new deal, Empire must refrain from using new or existing restrictive covenants, but it may still apply limited exclusivity clauses to prevent direct competitors from opening on a shared development, as allowed by the bureau’s guidance.

For shoppers, the removal of most anti‑competitive clauses means more grocery stores can open in their neighbourhoods, which could drive prices down and increase the variety of products available.

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