Canada: Competition Bureau launches grocery sector competition study

The Canadian Competition Bureau has announced that, in view of recent price increases, it will conduct a market study to examine retail competition in the grocery sector.

The study will focus on three issues: first, the extent to which the higher prices are attributable to changing competitive dynamics, including supply chain and ‎pandemic-related disruptions; second, ways in which the governments can foster competition by lowering barriers to entry and expansion; and third, measures taken by other countries to stimulate competition in the sector.

Because negotiation of a Grocery Code of Conduct is ongoing, the Bureau does not anticipate addressing retailers’ purchase of groceries from suppliers, apart from the influence such supply may have on retail competition.

Stakeholders have the opportunity to identify other issues and provide submissions on the Bureau’s issues by December 16, 2022. The Bureau is expediting its study, with a publication of a final public report, including recommendations, expected in June 2023.‎ See the Notice of Study here.

Of note, in March the New Zealand Commerce Commission published a report proposing recommendations to increase competition and help improve the price, quality and range of groceries and related services.

For more information on the study, including assistance with potential stakeholder submissions, please contact Amy Pressman or Kevin Wright.

*Samantha Arbor is an articled student based in DLA Piper’s Vancouver office.