The Globe and Mail reports in its Wednesday, July 22, edition that Empire will cease using measures that restrict competing businesses from certain locations. A Canadian Press dispatch to The Globe reports that this decision comes after the Competition Bureau expanded its probe into the grocer's property controls.
Empire said it will stop using restrictive covenants that prevent rivals from opening stores on former sites. These property controls, including exclusivity clauses, have faced increasing scrutiny from regulators.
Empire changed its policy following a June Federal Court order that expanded the Competition Bureau's investigation into the grocer's use of property controls across the country. The order granted access to more information on how these controls affect competition. The investigation is ongoing and no wrongdoing has been concluded.
Canadian AntiMonopoly Project director Keldon Bester said Empire saw the writing on the wall and "took this as an opportunity to try to get ahead of what would have been a lengthy and ultimately embarrassing investigation."
As Empire revises its property control policies, Mr. Bester emphasizes a "trust, but verify" approach instead of taking companies at face value.
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