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Amendments to the Competition Act (the “Act”) came into force in December 2024 and have significantly changed how exclusive use clauses in commercial leases are treated in Canada. The changes broaden the Act’s reach so that even typical landlord‑tenant agreements may now be reviewed if any part of the agreement is aimed at limiting competition.
In June 2025, the Competition Bureau (the “Bureau”) released guidance explaining how it plans to interpret and enforce the amended Act in relation to exclusive use clauses. The Bureau describes this as compliance guidance and encourages all businesses using or considering exclusivity in their leases to review their documents to ensure consistency with the updated law. This guidance provides the clearest picture to date of how the Bureau will assess exclusivity going forward.
