Competition Bureau broadens probe into Sobeys for property control issue

GATINEAU – The Competition Bureau is widening its probe into Sobeys parent company Empire Co. Ltd. for its use of property controls across Canada.

The bureau previously received an initial court order in 2024 requiring the grocer to provide information focused on property controls in Halifax.

The competition watchdog said on Monday it had received a new Federal Court order to obtain company records, written information and oral testimony related to the probe.

The latest court order grants the bureau access to additional information at a national level, such as how the grocer negotiates property controls and their effects on competition.

The bureau said the investigation is ongoing and there is no conclusion of wrongdoing.

Empire did not immediately respond to a request for comment.

Property controls are clauses added to a lease or deed that limit how real estate can be used by competitors.

For example, if a grocery store moves to a nearby location, a property control clause could prevent a competitor from entering the old store. That might be a rival grocer or even a more specific business, such as a bakery.

The clause might also limit other stores from selling similar products.

The Competition Bureau began investigating various grocers for their use of property control in 2024. The probe came after it released a report on competition in the grocery sector that described property controls as a tool that retailers may be using to curb competition.

It also launched an investigation into Loblaw Cos. Ltd. in 2024, claiming the clauses grocery giants baked into lease agreements are designed to restrict other potential tenants and their activities and are hampering competition in the grocery market.

The same year, Loblaw and Empire indicated they would be open to eliminating them, while Walmart said it would end the practice. Loblaw later said it would also stop using property controls.

The bureau said last June it continues to monitor Loblaw’s commitment to that pledge.

Last year, the bureau struck a deal with Empire to remove property control in Crowsnest Pass, Alta., which had been in place since 2017 — which the bureau alleged was protecting the grocer from competition and ensuring it remained the only grocery store in the area.

Empire’s IGA store had been the only grocery store in the town, which has about 6,000 residents.

This report by The Canadian Press was first published June 22, 2026.

Companies in this story: (TSX: EMP. A)