Competition Bureau urges retailers and landlords to drop property controls

OTTAWA — The Competition Bureau is urging retailers and landlords to drop or change competitor property controls that are not justified even if they do not raise issues under the Competition Act.

In new guidance released Wednesday, the watchdog encouraged companies to only use property controls, which can make it more difficult for firms to enter new markets or expand, where they increase competition.

Property controls in commercial leases may include limiting the kinds of stores that can open in a shopping mall, or limiting the kind of store that’s allowed to open in that location after a tenant leaves the property.

In June 2023, the bureau published a grocery market study that found property controls can limit competition from new grocers and can deny consumers the benefits of competition.

It reached a deal earlier this year with Empire Co. Ltd. to remove a property control that the regulator said restricted grocery store competition in Crowsnest Pass, Alta.

The bureau noted that restrictive covenants are particularly concerning as they apply to the land itself and can restrict future owners of the land. The bureau says it did not consider their use to be justified outside of exceptional circumstances.

This report by The Canadian Press was first published June 4, 2025.

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The Canadian Press