Loblaws Cleared By Investigation

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CBJ — The federal Competition Bureau has dropped an investigation that Loblaws allegedly 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.

“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.”

While a number of suppliers suggested that the policies influenced their dealings with other retailers, the allegations were not sufficiently supported by the evidence according to the Competition Bureau.

Loblaws is among several Canadian grocery companies to acknowledge an industry-wide investigation by the Competition Bureau into allegations of a price-fixing scheme involving certain packaged bread products.

@CanBizJournal

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