The Competition & Markets Authority has pushed back the conclusion of a review that could see Aldi and Lidl banned from blocking nearby rival stores.
The decision to delay conclusion until later this year is likely to frustrate bosses of other supermarkets, which are already banned from inserting clauses into land deals to block competitor stores.
Under rules introduced in 2010, Tesco, Sainsbury’s, Morrisons, Asda, Waitrose, Marks & Spencer and Co-op are all banned from writing restrictive covenants into property deals.
But Aldi and Lidl are not covered by the rules, as their market shares were much smaller at that time. It means there are no rules against them using the clauses to block nearby competition.
The CMA launched its review last spring after supermarket bosses expressed frustration at the differing treatment. Reports suggested they were told to expect an update in the autumn, only to be informed by the CMA in October that completion would be by the end of the year.
That delay led Iceland chairman Richard Walker to vent frustration in The Telegraph in November, claiming the CMA was failing to act “when markets are clearly being rigged”.
“I urge the CMA to pick up the phone to me today to tell me I am wrong, and that they are going to fix this mess,” he said. “This has got to stop – what are they afraid of?”
In an update this week, the CMA said the review had to gather and thoroughly analyse information from a wide range of sources and it expected the assessment to conclude later this year.
Since 2020, the CMA has named and shamed Tesco, Sainsbury’s, Asda, Morrisons, Co-op, M&S and Waitrose for breaching the 2010 order with land deals containing restrictive covenants.
Aldi and Lidl are both rapidly opening stores as they chase their goal of having 1,500 UK supermarkets each.
Aldi currently has about 1,080, having opened about 40 last year. It plans open another 40 this year in a £370m investment announced today.
Lidl opened its 1,000th UK store in November and is also planning to add 40 to its estate this year.
Mark Jones, partner at law firm Gordons, said last year that the two discounters could challenge a move to add them to the 2010 Order by arguing they do not meet the criteria, which includes selling “a full range of groceries”.
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