Canada: Competition Bureau drops investigation of Loblaws

Canada’s federal Competition Bureau said Tuesday, November 21, it has dropped an investigation into allegations that Loblaw Companies abused its dominant position in the Canadian grocery business in its dealings with suppliers.

The Commissioner of Competition said the decision to end the case follows a three-year investigation conducted by the agency into claims that the company implemented and enforced a number of anti-competitive policies.

“Under its policies, Loblaw sought compensation from suppliers when its profitability decreased due to other retailers’ competitive activities such as when they sold products at lower prices,” the Competition Bureau said in a statement posted on its website.

“Loblaw put an end to several of these policies in January 2016, during the Bureau’s investigation.”

The regulator said that while a number of suppliers suggested that the policies influenced their dealings with other retailers, the allegations were not sufficiently supported by the evidence.

The Bureau said it will take action if it receives additional information and concludes that any policies are in violation of the law.

“The line between hard bargaining and anti-competitive conduct is a fine one and firms should be careful not to cross it,” competition commissioner John Pecman said in a release.

Full Content: The Globe and Mail

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