A recent court order has been issued by the Competition Bureau against two major Canadian grocery chains, Loblaw and Sobeys. The order requires the companies to provide evidence of their alleged anti-competitive practices in the bread market.
The investigation by the Competition Bureau began in 2017, after Loblaw and Sobeys admitted to participating in a bread price-fixing scheme. The scheme involved the two companies agreeing to increase the price of bread in order to offset the cost of a new minimum wage in Ontario.
The court order, issued by the Federal Court of Canada, requires Loblaw and Sobeys to provide documents and information related to their bread pricing strategies. This includes any communications between the two companies, as well as with suppliers and competitors.
The Competition Bureau is responsible for enforcing the Competition Act, which aims to protect consumers from anti-competitive practices. The Act prohibits agreements between competitors that restrict competition, such as price-fixing.
In a statement, the Commissioner of Competition, Matthew Boswell, emphasized the importance of holding companies accountable for their actions. He stated, “The Bureau will not hesitate to take action against those who engage in anti-competitive conduct that harms Canadian consumers.”
Both Loblaw and Sobeys have stated that they will fully cooperate with the investigation. In a press release, Loblaw stated, “We are committed to complying with all laws and regulations, and we will continue to cooperate fully with the Competition Bureau.”
Sobeys also released a statement, saying, “We take our obligations under the Competition Act very seriously and will fully cooperate with the Bureau’s investigation.”
The court order is just the latest development in the ongoing investigation into the bread price-fixing scheme. In 2019, Loblaw and Sobeys were fined a total of $25 million for their involvement in the scheme.
The Competition Bureau has stated that the investigation is ongoing and that further action may be taken if necessary. As the case continues to unfold, it serves as a reminder to companies that anti-competitive practices will not be tolerated in Canada.
