OTTAWA--The parent of the Sobeys grocery chain in Canada has agreed to loosen the property controls the country's antitrust regulator accuses industry leaders of leveraging to quash competition.

The Competition Bureau on Tuesday said it reached an agreement with Empire to address concerns related to its use of property controls used in the grocery sector that restrict the use of commercial real estate for the sale of food.

After committing to changes in July, Empire will formalize measures that will become legally binding and enforceable. This includes no longer enforcing existing restrictive covenants, entering into new restrictive controls, or requesting that others establish them for the benefit of Empire, the regulator said.

Empire also agreed to limit the use of exclusivity clauses that restrict specialty food retailers such as bakeries, butchers, pharmacies, dollar stores and convenience stores. These have in the past included radius clauses that prevent certain retailers from operating on other properties near an Empire grocery operation.

The Competition Bureau said the agreement will help provide greater certainty and remove barriers for companies looking to enter or expand in food retail.

The bureau in mid-2023 published a market study that concluded property controls can limit competition from new grocers and limit consumers the benefits of competition. A year later, it announced it had obtained two court orders to push ahead with investigations into property controls used by the parent companies of Sobeys and rival Loblaw.

The bureau's investigation into the use of property controls by other grocers in Canada is ongoing, and it said it continues to monitor the industry closely.