CMA orders Sainsbury’s and Asda to stop anti-competitive land agreements

Sainsbury’s and Asda have recently been ordered to stop using unlawful anti-competitive land agreements by the Competition and Markets Authority (CMA).

The unlawful agreements include placing restrictions on land they own from being used by a rival supermarket, a move which doesn’t allow shoppers to have more choice and benefit from a wider range of groceries and cheaper prices. 

According to the CMA, the two grocers have breached the Groceries Market Investigation Order 2010, which was brought in to stop supermarkets imposing new restrictions that stop rivals from opening competing stores nearby. The CMA found that Sainsbury’s breached the order 18 times between 2011 and 2019, while Asda breached it 14 times. 

So far, Sainsbury’s has agreed to remove the restrictions mentioned by the CMA while Asda’s land agreements have already been removed. 

In addition, the CMA is currently undertaking a separate piece of work to assess whether any failure in competition is contributing to grocery prices being higher than they would be in a well-functioning market.

David Stewart, executive director, markets and mergers at the CMA said: “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.

“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.”