Recent amendments to competition law will prohibit the use of
exclusivity clauses in commercial leases in all but specific
circumstances. Changes to Canada's Competition Act
(R.S.C. 1985, c. C-34) enacted in June and December 2024 have the
stated intent to expand the scope and enforcement powers concerning
anti-competitive lease provisions.
Key amendments and their implications
The Competition Tribunal, the enforcement arm of the federal
Competition Bureau, can now intervene if a firm's conduct
demonstrates either anti-competitive intent or effect. A reduction
to the threshold for enforcement serves to increase the risk for
businesses relying on exclusivity clauses in their commercial
leases.
