Competition watchdog writes province to support loosening Ontario liquor rules

Canada's competition commissioner says he supports measures to increase competition in Ontario's alcohol industry.

Matthew Boswell writes in an open letter to Ontario Finance Minister Rod Phillips that the competition bureau supports a special adviser's recommendations, including the government working to authorize more retail outlets to sell alcohol.

He says the changes could give retailers equal opportunity to sell their products, encourage price competition and support proper wholesale pricing.

That, in turn, could lead to consumers having more products to choose from and lower prices.

Under the current system, a maximum of 450 grocery stores can sell alcohol, licensed retailers must charge identical prices for products, and bars and restaurants must purchase alcohol from the LCBO and the Beer Store at consumer prices rather than wholesale ones.

Boswell wrote a similar letter to B.C.'s attorney general in January, supporting recommendations aimed at increasing competition in that province's alcohol sector made in a report commissioned by the provincial government.