Supermarkets to face Competition enquiry
Supermarkets will face a Competition Commission inquiry into their dominance in the UK grocery market, the Office of Fair Trading has announced today.
The OFT’s initial inquiry found that supermarkets’ increased consolidation and their move into the convenience sector could distort competition and harm consumers.It expressed concern over the accrual of “significant” land banks which could act as a barrier to entry against their competitors. In a few examples some supermarkets had attached “restrictive covenants” on selling their sites, the OFT found.
OFT chief executive John Fingleton said “Although consumers have benefited from lower prices, the restrictions in the planning system, and the possible incentives those restrictions create for retailers to distort competition, may harm consumers and mean that competition in the market is less than it might otherwise be.”