The federal Competition Bureau said Tuesday it has dropped an investigation into allegations that Loblaw Companies Ltd. 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.
Loblaws pleased
Loblaws said it welcomed news of the end of the probe.
“We are pleased with the conclusion that no further action is required at this time,” Kevin Groh, the company’s vice-president for corporate affairs, said in statement emailed to CBC News.
“We have been an open book and made significant contributions to the bureau’s review,” he said.
“We have used the process to better understand the bureau’s concerns and observations, and have simplified the way we conduct our business with suppliers. We are continuing to introduce industry-leading compliance measures.”
The discontinued investigation is separate from an ongoing criminal investigation into allegations of anti-competitive conduct in the industry.