Loblaw Cos. Ltd. collected more than “tens of millions of dollars” from its suppliers last year for practices which, according to the Competition Bureau, could be anti-competitive and ultimately lead to higher prices.
The revelation is contained in an affidavit sworn in Federal Court that is part of the bureau’s investigation into Loblaw’s potential anti-competitive behaviour with its suppliers, forcing them to make up the difference to match retail rivals’ lower prices.
“The terms, which appear to be used to protect Loblaw’s retail margins, may raise its rivals’ costs and increase the prices Canadian consumers pay for grocery products in Canada or have other non-price related effects on competition,” David Warford, a senior competition law officer at the bureau, said in a sworn statement on March 26.
MARINA STRAUSS AND JEFF GRAY – Globe and Mail – June 01, 2015.
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