Almost three years ago, the Ontario government brought forth a legislation to terminate an alcohol-retailing agreement which has big breweries threatening to sue for a billion dollars.

Since then, there has been very little movement from the government and Labatt and Molson-Coors over the future of the Master Framework Agreement, which gives The Beer Store an effective duopoly over beer sales in the province. The legislation, the Bringing Choice and Fairness to the People Act, has been passed by the legislature, but still hasn’t been signed into law.

“Big-ticket litigation and disputes are really costly,” said Trevor Farrow, a professor at York University’s Osgoode Hall Law School regarding why there are incentives for both sides to settle on a deal.

“The breweries, which together control 98 per cent of The Beer Store, also likely know they have less leverage the closer it gets to 2025,” said Farrow. “The government, in turn, might want to use big change to the alcohol retail system as a vote grabber.”

“I think it would be really strongly within the government’s interest to get a deal done, or the framework for a deal done in advance of the next election,” said Farrow. “They could still point to the fact they got the legislation passed, but it’s not in force.”

Click here for the full story.