CMA calls for action after Tesco unlawfully blocked rival supermarkets

The Competition and Markets Authority is calling for action after Tesco unlawfully blocked rival supermarkets from opening shops near its stores.

According to the CMA, Tesco has now committed to put an end to these anti-competitive restrictions.

The watchdog first discovered what Tesco was doing during monitoring in 2018 and deemed it unlawful since it reduces competition and lowers choice for shoppers.

According to the CMA it is unlawful under the Groceries Market Investigation (Controlled Land) Order 2010.

Tesco committed 23 breaches in total after reviewing its actions.

The CMA is also writing to all other supermarkets bound by the Order (Waitrose, Sainsbury’s, Asda, Morrisons, M&S and the Co-op), asking them to show that their land agreements are not in breach.

Andrea Gomes da Silva, Executive Director, Markets and Mergers at the CMA said: “It’s unacceptable that Tesco had these unlawful restrictions in place for up to a decade. By making it harder for other supermarkets to open stores next to its branches, shoppers could have lost out.

“In the future, we want the ability to fine businesses if we find that they are in breach of our orders. That’s why we’ve called on the Government for more powers.”