Competition Commission supermarket probe expected today

15-02-2008

Competition Commission supermarket probe expected today
The Competition Commission is expected to publish its long-awaited report into UK grocers today - a report which could see sweeping changes introduced to the market.

The big four grocers - Asda, Tesco, Sainsbury's and Morrisons - have been accused of buying up land to prevent rivals opening nearby and using their buying power to set unfair prices for suppliers.

According to market research group TNS Worldpanel, these four retailers now account for more than three-quarters (76.2 per cent) of the grocery market.

But the UK's biggest supermarkets say their success is down to popularity with consumers.

The commission launched an inquiry to investigate the claims two years ago and the results are expected today.

Recommendations could include an ombudsman to protect food suppliers in disputes with the big chains and changes to the planning system.

Grocers could even be forced to sell land if local planners believe a retailer owns too much in one area and does not intend to develop it.

In its preliminary report, published last October, the commission said it was concerned over some aspects of competition within the grocery market, including the effects of large grocers on small, independent shops, and on farmers.

The report also raised concerns over the implications of the strong position of Tesco, and its accumulation of a so-called 'landbank'.

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