CMA moves to extend landblocking rules to Aldi and Lidl

Summarised from 3 outlets · Updated 22 Oct, 12:02 · Archive

The Competition and Markets Authority has provisionally decided to extend landblocking rules to Aldi and Lidl, reclassifying them as large grocery retailers.

The Competition and Markets Authority (CMA) has provisionally decided to extend the Controlled Land Order to cover Aldi and Lidl, bringing them within a law that bans the UK's biggest supermarket chains from engaging in landblocking. The two German discounters will now be reclassified as large grocery retailers rather than limited assortment discounters, the category that previously exempted them from the rules. This means they will join Asda, Co-op, Marks & Spencer, Morrisons, Sainsbury's, Tesco and Waitrose in being blocked from using land arrangements to gain competitive advantage over rivals.

Supermarket giants including Waitrose and Morrisons have welcomed the decision. Other retailers argued that Aldi and Lidl's exclusion allowed them to deploy problematic land arrangements at scale in a way that could harm competition across the UK grocery market. Iceland, which is not covered by the land order, said in a letter published on Thursday that whilst the two discounters occupied a relatively small part of the market when the original order was set up, they now each exert significant competitive influence in UK groceries.

CMA moves to extend landblocking rules to Aldi and Lidl — Image: Independent Business

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How it is being reported

Aldi and Lidl to face same rules as rival supermarkets, says watchdogThe CMA said it will designate Aldi, Lidl GB and Lidl NI as ‘large grocery retailers’ under current industry rulesIndependent Business · 22 Oct, 14:53
Aldi and Lidl to face same rules as rival supermarkets, says watchdogOn Thursday, the CMA said it will designate Aldi, Lidl GB and Lidl NI as ‘large grocery retailers’ under current industry rules.Evening Standard · 22 Oct, 14:21
Supermarket giants welcome crackdown on Aldi and LidlSupermarket giants, including Waitrose and Morrisons, have welcomed the competition watchdog’s decision to crack down on Aldi and Lidl. Lidl and Aldi are currently excluded from a law which bans the UK’s biggest supermarket chains from engaging in so-called ‘landblocking‘. Top grocers have already warned that the existing rules allowed the two German discounters to use a “problematic” [...]City AM · 22 Oct, 11:40

In this story: Competition and Markets Authority · Aldi · Lidl · Tesco · Sainsbury's · Asda · Morrisons · Waitrose

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