It seems right “on face value” that Aldi and Lidl should face the same land competition rules as other supermarkets, investment minister Jason Stockwood has said.
Stockwood was responding to a question in the House of Lords about the Competition and Markets Authority’s review of Aldi and Lidl’s exemption from rules that bind other major supermarkets.
Under a competition order introduced in 2010, Tesco, Sainsbury’s, Morrisons, Asda, Waitrose, Marks & Spencer and Co-op are all banned from writing clauses into property deals that block rival stores from opening nearby.
But Aldi and Lidl are not covered, as their market shares were much smaller at that time.
The CMA launched its review last spring after supermarket bosses expressed frustration at the differing treatment.
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Stockwood was challenged on the issue on Wednesday by Tory peer Timothy Kirkhope, who said: “The situation is absolutely unsatisfactory in that the seven main supermarket chains have been obliged to adhere to strict requirements on restrictive covenants in their area, preventing others from opening shops nearby, whereas newcomers such as Aldi and Lidl, which have now grown to an enormous size – a commensurate size – are not required to fulfil those obligations”.
“That surely is wrong,” Kirkhope added. “If the CMA has any role in life, surely it must be to have a level-playing field in retailing.”
Stockwood replied: “The CMA is currently doing its work, including on a consultation to get feedback on how Aldi and Lidl should be treated. We acknowledge that the argument for exemption does distort the market, but the independence of the CMA must be respected.
“I share the noble Lord’s views that it seems right on face value that Aldi and Lidl should be brought into that same regime.”
The Grocer revealed in January that the CMA had pushed back its decision to later this year, having earlier said the review would conclude by the end of 2025.
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