Sainsbury’s and Asda have agreed to stop unlawful anti-competitive land agreements after the UK watchdog found them to be in breach of the Groceries Market Investigation Order 2010.
The Competition and Markets Authority (CMA) found the grocers took part in unlawful agreements spanning an eight-year period from 2011 to 2019.
Some of the practices deemed unlawful include placing restrictions on land they own being used by a rival, 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 breached the order 18 times, while Asda was found to have broken the order 14 times.
London-listed Sainsbury’s has agreed to remove outstanding restrictions, while Asda’s land unlawful land agreements have already been removed.
The CMA said that ensuring supermarkets compete freely gives shoppers more choices and allows them to benefit from a wider range of groceries at varying prices.
“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,” said David Stewart, executive director of markets and mergers at the CMA.
“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