CMA finds Sainsbury’s and Asda blocked rivals from store openings
The Competition and Markets Authority has said it has secured agreements from Sainsbury’s and Asda to stop using unlawful anti-competitive land agreements.
The supermarket giants have agreed to address 32 anti-competitive land agreements that prevent rivals opening nearby, according to the regulator.
The CMA found that the retail giants, who respectively hold the second and third highest market shares in the UK’s £188.1bn supermarket industry, breached the Groceries Market Investigation (Controlled Land) Order 2010, which was brought in to stop supermarkets imposing new restrictions that stop rivals from opening competing stores nearby.
The Competition and Markets Authority has said it has secured agreements from Sainsbury’s and Asda to stop using unlawful anti-competitive land agreements.
The supermarket giants have agreed to address 32 anti-competitive land agreements that prevent rivals opening nearby, according to the regulator.
The CMA found that the retail giants, who respectively hold the second and third highest market shares in the UK’s £188.1bn supermarket industry, breached the Groceries Market Investigation (Controlled Land) Order 2010, which was brought in to stop supermarkets imposing new restrictions that stop rivals from opening competing stores nearby.
Those anti-competitive agreements included placing restrictions, on land they own, from being used by a rival supermarket or imposing restrictions lasting five years or more that stop landlords from allowing competing stores on land in the same block as an existing supermarket.
Sainsbury’s was found to breach the order 18 times between 2011 and 2019, while Asda was responsible for 14 of the land agreements made during the same period.
The CMA said ASDA has removed the restrictions identified in their agreements, and that Sainsbury’s has agreed to do similar but not yet made the changes.
David Stewart, executive director, markets and mergers at the CMA, said: “Restrictions of this nature are against the law, cause real harm to shoppers and will not be tolerated. This is particularly important at a time when many families are struggling to pay their weekly grocery bills.
“With families under increasing pressure, it is even more critical that competition between supermarkets is helping people to get the best deal.
“This enforcement action today is part of our wider action to tackle the cost of living and ensure that families really benefit from more competition.
“We recently stepped up our work to assess whether any failure in competition is contributing to grocery prices being higher and we will be updating on this next month.”
Last year, the regulator took action against Waitrose for seven breaches of the same rules. In 2020, it found Tesco was responsible for 23.
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