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Competition Bureau, Empire reach deal on grocer's property control commitments
The legally binding deal requires Empire to stop enforcing land restrictions and curb exclusivity clauses that limit leasing to competitors, the bureau said.
On Tuesday, the Competition Bureau reached a deal with Empire Co. Ltd. to limit grocery property controls, formalizing commitments the grocer made earlier this year.
Under a consent agreement registered with the Competition Tribunal, Empire will no longer use or enforce land restrictions that prevent properties from being leased to certain business types.
Empire will also limit its use of exclusivity clauses, which prohibit landlords from leasing space to tenants competing with existing ones in the same location.
The Competition Bureau stated property controls in the grocery sector reduce competition in local markets across Canada, necessitating the new legally binding commitments from the grocer.
Legally binding and enforceable commitments ensure Empire adheres to new property management standards moving forward, with the regulator confirming full compliance mechanisms are in place.
The competition authority states that IGA's parent company, Empire, has formalized its commitment to lift real estate restrictions that may prevent competing grocery stores from operating nearby.