The Competition Bureau is taking a firm stance against anti-competitive practices in commercial real estate. In a recent announcement, they’ve urged both retailers and landlords to eliminate or modify restrictive property controls, even if these controls don’t explicitly violate the Competition Act.

This new guidance, released Wednesday, emphasizes a proactive approach to maintaining a healthy competitive landscape. The Bureau encourages the use of property controls only when they demonstrably enhance competition. This is a significant shift, suggesting a more nuanced interpretation of what constitutes fair market practices.

What exactly are these problematic property controls? They often appear in commercial leases and can include restrictions on the types of businesses allowed in a shopping mall or even restrictions placed on a space after a tenant vacates. Such limitations can create significant barriers to entry for new businesses, stifling innovation and limiting consumer choice.

The Bureau’s message is clear: unjustified restrictions on who can operate in a given space will face increased scrutiny. This proactive approach aims to prevent anti-competitive practices before they escalate into full-blown violations, fostering a more dynamic and competitive marketplace for all.