Canada’s Competition Bureau has launched investigations into the parent companies of grocery chains Loblaws and Sobeys for alleged anti-competitive conduct, court documents reveal, with Sobeys’ owner calling the inquiry “unlawful.”
The Federal Court documents show the commissioner of competition launched the probes on March 1, saying there’s reason to believe the firms’ use of so-called property controls limits retail grocery competition.
The commissioner claims the controls that the grocery giants have baked into lease agreements are designed to restrict other potential tenants and their activities and are hampering competition in the grocery market.
The Competition Bureau revealed its investigation into the use of property controls in the grocery sector in February.
This is an encouraging step, and it’s nice to see the heat being turned up on the grocery monopoly.
I think we need cost controls and compulsory transparency about pricing. What stick exactly are the grocery companies wielding to prevent measures like that from being rolled out? A federal government with vision and principles would have had a plan and gotten this done yesterday. Instead, we’re waiting for the assent of megacorps to a non-binding code of conduct, which everybody knows is total vaporware.
I can see why people are disaffected by all the hand waving about ‘competition’. Increased competition is probably part of the solution to the problem here. But it’s not a valid starting point. It’s a result of wise policy and good implementation.