Empire to drop restrictive property clauses after Competition Bureau agreement
Empire, the owner of Sobeys and other grocery chains, has agreed to stop enforcing restrictive property covenants following a Competition Bureau probe.
After a Competition Bureau investigation into anti-competitive property practices, Empire - the parent of Sobeys, Farm Boy, Foodland, Safeway, IGA, FreshCo and other banners - consented to relax its use of restrictive covenants and exclusivity clauses. The Bureau explained that such clauses can prevent landlords from leasing space to competing grocery stores, limiting market entry. The new agreement, now registered with the Competition Tribunal, turns Empire's July promises into enforceable obligations, prohibiting the company from enforcing, creating, or requesting new restrictive covenants.
The Bureau expects the change to foster new entrants, drive competition, and ultimately lower grocery prices for Canadians. Existing leases may still contain old clauses, but any party can request their removal from Empire. The move follows similar actions against other grocery conglomerates, such as Loblaw, as food affordability remains a national concern.
How the sides frame it
MODERATE AGREEMENTBoth camps report Empire's agreement to drop restrictive property clauses, but left-leaning coverage highlights the cooperative aspect and expected consumer benefits, while centrist coverage frames it as the result of a battle and emphasizes the anti-competitive nature of the previous controls.
LEFT
Frames the agreement as a cooperative step that will boost competition and lower grocery prices.
CENTER
Frames the agreement as the outcome of a dispute, stressing the anti-competitive nature of the prior property controls.
The left emphasises
- relax its use of restrictive covenants and exclusivity clauses
- Bureau expects the change to foster new entrants
- ultimately lower grocery prices for Canadians
