Saturday, December 13, 2025

Winnipeg Sun Believes Removal of Removal of Covenants Has No Effect on Competition

The December 13 editorial of the Winnipeg Sun believes competitive food prices only come from tax cuts. Removal of gas tax, business tax, property tax and income taxes. There is no mention of price fixing. Even if all those thing happened, the grocery and suppliers have fixed prices for bread and other items to that point that companies like Aldi believe the game is fixed here. And it is.

Large grocery stores have agreements to keep empty store faces or other competitors from setting up anywhere near them. Such actions with surely have U.S. authorities such as FBI kicking down the doors were it to happen in the States. The Sun says the Competition Bureau says the restrictive covenants don't restrict competition. In fact this is what the Canada's agency says:

A restriction on land that prevents a purchaser or owner of a commercial property from using the location to operate or lease to operators of certain types of businesses that compete with a previous owner.

The UK and New Zealand have restrictions on grocery stores from hoarding land and forbidding others from buying or using it to compete with them. This has NOTHING to do with taxes. Nothing. 

In Brandon a Sobeys was closed in 2017 and Sobeys has leased the property twice for five years terms to prevent competition. Above is a picture of that store. The Sun believes this is the result of overtaxing? Shindico said this was to prevent competition. Does the Sun believe this property should be restricted from sale or use? Do they even think this is a good idea? Why would Sobeys do this if they thought it didn't limit competition?

Antitrust is a real thing. It is private enterprise manipulating prices and competition. It happened with bread and it happens with property. The Sun says this doesn't exist? 

Prices are indeed affected by many things. But it just isn't government taxes. It is sometimes companies inflating prices, putting the thumb on the scales (or the packages) and they have been caught red handed. However, an empty storefront leased for years doesn't raise any eyebrows. It is the government's fault. 

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