Rosa Saba, The Canadian PressJay Strosberg, managing partner at Strosberg Wingfield Sasso LLP, joins BNN Bloomberg to discuss the landmark $500M settlement reached with George Weston and Loblaw.
Spokeswoman Catherine Thomas says Loblaw is willing to stop using the covenants, which are terms baked into commercial leases that put restrictions on other tenants and their activities.The Competition Bureau is currently investigating Loblaw and Sobeys’ use of property controls in the grocery sector, and has said these controls are hampering competition.
The bureau revealed its investigation in February, with deputy commissioner Anthony Durocher saying property controls can be a barrier both for independent grocery stores and larger chains, as well as for foreign grocers looking to enter the country. Thomas says property controls have been around for decades as a way of incentivizing development, but they may also reduce options for consumers.
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