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Canada’s Grocery Giant, Empire Company Limited, Owner of Sobeys Under Investigation.
The battle over Canada’s grocery shelves has moved from shopping aisles to the courtroom.
The Competition Bureau says it has obtained new court orders to expand its investigation into Empire Company Limited, the parent company behind major grocery brands including Sobeys, Farm Boy, Safeway Canada, IGA Canada, Foodland and FreshCo.
At the centre of the investigation is a question that could affect how Canadians shop for food: do property agreements that control how commercial spaces are used limit competition and keep new grocery competitors from entering the market?
The Bureau says the investigation is examining Empire’s use of “property controls” across Canada and whether these practices could reduce competition in the grocery sector — an industry already under intense public scrutiny because of concerns over food prices and affordability.
“Lack of competition in the grocery industry can result in higher prices, lower quality and less availability,” the Bureau said in its statement.
The newly granted orders from the Federal Court of Canada require Empire to provide records, written information and oral testimony as part of the ongoing investigation.
The Bureau previously obtained an order focused on Empire’s property controls in the Halifax Regional Municipality. The latest orders will allow investigators to look beyond one region and examine the company’s practices across Canada, including how property controls are negotiated and their possible impact on competition.
Property controls are restrictions placed on commercial real estate agreements that can limit what businesses are allowed to operate in certain locations. The Bureau says these arrangements are common in retail, but they can become a barrier when they prevent competitors from opening nearby stores.
The issue has been on the Bureau’s radar for several years. In its 2023 grocery market study, the agency said property controls could prevent new grocery retailers from entering markets and reduce consumer benefits such as lower prices, more choices and innovation.
The investigation has already led to action. In January 2025, the Bureau said investigative work resulted in Empire agreeing to remove a property control that restricted grocery competition in Crowsnest Pass, Alberta.
However, the latest move does not mean Empire has been found to have broken competition laws.
“The investigation is ongoing and there is no conclusion of wrongdoing at this time,” the Bureau said.
As Canadians continue to watch grocery bills closely, the investigation raises a broader question: in a country where food shopping is a weekly necessity, how much room should there be for competition — and who controls the spaces where new competitors could open their doors?
The Competition Bureau says Canadians who believe property controls may be harming competition can report concerns through its online complaint process.
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