The Competition Bureau has closed a three and a half year civil investigation into Loblaw Companies Ltd. that looked into allegations the grocery retailer had abused its dominant position in dealing with suppliers.
The Bureau stated that it concluded there wasn't sufficient evidence to support allegations that the company had abused its dominant position. Loblaw welcomed the news.
"We have been an open book and made significant contributions to the bureau's review. 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,'' said spokesman Kevin Groh. "We are continuing to introduce industry-leading compliance measures.''
The civil investigation, which the bureau said is separate from its criminal investigation into the grocery industry, centred on whether Loblaw had influenced its suppliers' dealings with other retailers by seeking compensation when other retailers sold their products at lower prices. The bureau said it identified several Loblaw policies that raised concerns but found no clear evidence that they had actually reduced competition with its rivals, resulting in its decision to end the civil probe.