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The Competition and Markets Authority (CMA) has taken action after finding that Morrisons and Marks and Spencer made unlawful anti-competitive land deals to block rivals.
The regulator confirmed the retailers have now agreed to address 65 anti-competitive land agreements which prevented competitors from opening nearby.
According to the CMA, the unlawful agreements include restrictions on land being used by a rival supermarket, or restrictions lasting five years or more that stop landlords from allowing competing stores to set up.
The CMA found that the retailers breached the Groceries Market Investigation (Controlled Land) Order 2010, which was introduced to stop supermarkets imposing new restrictions that block rivals from opening competing stores nearby.
According to its findings, Morrisons breached the Order 55 times between 2011 and 2020 whilst M&S breached the Order 10 times between 2015 and 2019.
The CMA added that Morrisons currently has the poorest compliance record with the Order that it has seen to date. Although 14 of these restrictions have ended, there are an outstanding 41 restrictions that Morrisons has agreed to address. Meanwhile, five of M&S’s restrictions have ended and it has agreed to address the remaining five.
Adam Land, senior director of Remedies Business and Financial Analysis at the CMA said: “At a time when the weekly shop is a source of financial pressure for many families, it’s crucial that competition between supermarkets is working well to help people get the best deals they can.
“These restrictive agreements by our leading retailers are unlawful. There can be no excuses made for non-compliance with an Order made in 2010, especially when we know the positive impact for shoppers of new stores on the high street. Our continued crackdown on these unlawful restrictions is part of our wider action to tackle the cost of living and ensure that people benefit from more competition and choice.”
Morrisons spokesperson said: “We co-operated fully with the investigation and accept its findings. We now plan to rectify the outstanding breaches quickly.”
M&S has also been contacted for comment.
