The Commissioner of Competition said the decision to end the case follows a three-year investigation conducted by the agency into claims that the company implemented and enforced a number of anti-competitive policies.
But the company is still under investigation related to prices of bread and perhaps other products. That investigation, which includes Canada’s two largest bread companies, one of them owned by Weston’s which also owns Loblaws, began this fall.
The now-shelved investigation responded to supplier complaints that "under its policies, Loblaw sought compensation from suppliers when its profitability decreased due to other retailers' competitive activities such as when they sold products at lower prices," the Competition Bureau said in a statement posted on its website.
"Loblaw put an end to several of these policies in January, 2016, during the Bureau's investigation."
The regulator said that while a number of suppliers suggested that the policies influenced their dealings with other retailers, the allegations were not sufficiently supported by the evidence.
The bureau said it will take action if it receives additional information and concludes that any policies are in violation of the law.
"The line between hard bargaining and anti-competitive conduct is a fine one and firms should be careful not to cross it," competition commissioner John Pecman said in a release.
Kevin Groh, Loblaws’ vice-president for corporate affairs, said he is pleased with the decision.
"We have been an open book and made significant contributions to the bureau's review," he said.
"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. We are continuing to introduce industry-leading compliance measures."
Loblaws and Sobey’s have several times announced they will reduce the amount they will pay on invoices by one or two per cent, and apply the cuts retroactively.
Suppliers have little choice but to comply, else they would lose access to more than 70 per cent of Canadian grocery shoppers.
