The Competition Bureau is investigating Loblaw Companies Ltd. and its relationship with some of its suppliers, which may be raising concerns under the Competition Act, despite behavioural restrictions for its supplier agreements that were imposed on the grocer when it acquired Shoppers Drug Mart in early 2014.
“The bureau is looking at these practices and the impact that they could have on competition in the marketplace,” said spokesman Greg Scott, as reported by Canadian Grocer.
The Competition Bureau is investigating to ensure restrictions remain in place on certain programs and agreements, to avoid higher wholesale prices as paid by other retailers and higher prices by consumers.
“Given it’s the nation’s largest-ever retail acquisition, we understand the bureau’s interest in maintaining competition in the marketplace,” Loblaw spokesman Kevin Groh told Canadian Grocer. “We don’t believe our commitment or practices are inconsistent with a competitive market. But, we continue to cooperate with the bureau and have worked to provide them with the clarity they require.”
