Competition Bureau expanding probe into Empire Company's grocery property controls

The Competition Bureau of Canada has been granted expanded authority to investigate whether Empire Company Ltd.'s use of property controls harms competition in the retail grocery industry. The Federal Court issued the orders Monday, widening an inquiry that began with focused scrutiny of the grocery giant's practices in Halifax.

Empire is the parent company of Safeway (in BC, Alberta, Saskatchewan, and Manitoba), IGA (BC, Alberta, Saskatchewan, Manitoba, and Ontario), FreshCo (BC and Alberta), Sobeys (Maritimes), and Farm Boy (Ontario). The expanded investigation will examine Empire's use of property controls across the entire country to determine whether the practices restrict competition.

Property controls restrict how commercial real estate can be used by others. They're common across Canada, but the Competition Bureau says they can harm competition by making it difficult or even impossible for new grocers to open stores. The court orders require records, written information, and oral testimony relevant to the bureau's investigation, including how the company negotiates property controls and their potential impacts on competition nationwide.

This expansion follows an initial court order in June 2024 focused on Empire's practices in Halifax. The bureau's June 2023 grocery market study found that property controls can limit competition from new grocers and deny consumers benefits including lower prices, greater choice, and increased innovation.

In January 2025, Empire agreed to remove a property control that restricted retail grocery store competition in Crowsnest Pass, Alberta, where the company's IGA store had been the only one in the region since 2017. That concession suggests the practice is real enough to warrant removal when scrutinized.

The broader investigation is also examining George Weston Ltd.'s (Loblaw's parent) use of property controls. In June 2025, the Competition Bureau said it would be monitoring Loblaw's commitment to eliminating property controls.

The Competition Bureau says lack of competition in the grocery industry can result in higher prices, lower quality, and less product availability.