The Competition Bureau is investigating whether the industry is contributing to the growing cost of goods in light of the hotly contested food inflation and record-breaking grocery shop earnings.
This is what something entails and what might result from it.
The majority of the market is dominated by Canada’s three largest supermarket chains: Empire Foods Ltd., Metro Inc., and Loblaw Companies Ltd.
Critics contend that increased competition in the industry would result in more reasonable rates for customers.
According to the Bureau, it is researching how the government can encourage more competition in the supermarket market and why food costs are so high.
An investigation is distinct from a market research. The Bureau studies a market and searches for internal impediments to competition, such as rules or policies, during a market research.
On the other hand, an investigation entails the Bureau investigating into claims of misconduct by one or more businesses or within a particular industry.
For instance, the Bureau opened an investigation into claims that retailers and suppliers were working together to manipulate bread product prices in 2017.
The Bureau claims it lacks the authority to compel grocery stores to provide the information they use to set prices in order to conduct a market research. Instead, it plans to depend on information that is already in the public domain and that is voluntarily contributed, as well as information from retailers, government representatives, academics, and regular Canadians.
Additionally, it intends to use earlier research, including those done by international agencies that looked into grocery rivalry in other nations.
The Bureau points out that this is a research and not a criminal probe, and it is not looking into particular claims of legal violation. But if it uncovers potential legal wrongdoing, it says it will investigate and take appropriate action.
In June 2023, the report’s results are expected to be made public along with recommendations for governments to help increase competitiveness.
Market studies are not frequently released by the Bureau. The most recent one, which is still ongoing, was the Digital Health Care Market Research released in July 2020.
Less than 10 studies on topics like the broadband business, financial technology, generic pharmaceuticals, and self-regulated professions have been performed over the past 15 years.
Here is what the Competition Bureau plans to look into in a fresh investigation as supermarket prices increase.
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