Supermarkets Fined for Breaching Groceries Market Investigation Order 2010
- CMA orders Sainsbury’s and Asda to stop using unlawful anti-competitive land agreements
- Sainsbury’s breached the order 18 times between 2011 and 2019, while Asda breached it 14 times
- CMA is assessing whether competition failure contributes to higher grocery prices
- David Stewart: ‘Restrictions of this nature are against the law and harm shoppers’
- Enforcement action aims to tackle cost of living and promote more competition
The Competition and Markets Authority (CMA) has ordered Sainsbury’s and Asda to cease using unlawful anti-competitive land agreements that restrict rivals from opening nearby stores. The CMA found both supermarkets breached the Groceries Market Investigation Order 2010, which aims to prevent supermarkets from imposing restrictions on land ownership. Sainsbury’s has agreed to remove restrictions, while Asda’s have been removed. The CMA is also investigating whether competition failure contributes to higher grocery prices. David Stewart, executive director at the CMA, emphasized that such practices harm consumers and are against the law.
Factuality Level: 10
Factuality Justification: The article provides accurate information about Sainsbury’s and Asda being ordered by the CMA to stop using unlawful anti-competitive land agreements, mentions the specific breaches of the Groceries Market Investigation Order, and quotes a representative from the CMA. It does not include any irrelevant or sensational details, repetitive information, personal opinions, or logical errors.
Noise Level: 3
Noise Justification: The article provides relevant information about Sainsbury’s and Asda being ordered by the CMA to stop using unlawful anti-competitive land agreements, which is important for consumers. However, it lacks in-depth analysis or exploration of the consequences of these actions on the market and consumers.
Financial Relevance: Yes
Financial Markets Impacted: Supermarkets (Sainsbury’s and Asda) and their customers
Financial Rating Justification: The article discusses the impact of anti-competitive land agreements by Sainsbury’s and Asda, which affects the grocery market and potentially impacts prices for consumers. This has financial relevance as it involves two major supermarket companies and could affect consumer spending on groceries.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
www.retailsector.co.uk