The Financial Post reports in its Thursday, Sept. 24, edition that Empire on Tuesday agreed to limit its use of commercial lease conditions that make it difficult for others to open and operate competing grocery options.
The Post's Barbara Shecter writes that the agreement with the Competition Bureau makes Empire's commitments legally binding and enforceable and could potentially help bring down grocery prices.
"The agreement with Empire removes barriers to competition and will support new entry and increased competition from retailers selling everyday essential items," Jeanne Pratt, interim commissioner of competition, said.
She also said the watchdog is committed to identifying and addressing barriers that limit competition across the food supply chain so that Canadians can get lower prices and greater choice.
University of Ottawa law professor Jennifer Quaid notes that competition authorities have been examining covenants and exclusivity clauses in commercial leases as part of "property controls" for several years.
These structures can restrict landlords from leasing to competitors or limit how products are sold. Ms. Quaid says authorities are also monitoring the grocery and real estate operations of Loblaw.
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