Regulator Takes Action on Anti-Competitive Practices in Supermarket Industry

  • CMA found unlawful anti-competitive land deals by Morrisons and Marks & Spencer
  • Retailers agreed to address 65 anti-competitive agreements that prevented rivals from opening nearby
  • Breach of the Groceries Market Investigation (Controlled Land) Order 2010
  • Morrisons had the poorest compliance record among retailers
  • Outstanding restrictions to be addressed by both companies

The Competition and Markets Authority (CMA) has taken action against Morrisons and Marks & Spencer for making unlawful anti-competitive land deals to block rivals. The retailers have agreed to address 65 anti-competitive land agreements that prevented competitors from opening nearby, breaching the Groceries Market Investigation (Controlled Land) Order 2010. Morrisons breached the order 55 times between 2011 and 2020, while M&S breached it 10 times between 2015 and 2019. The CMA added that Morrisons has the poorest compliance record to date, with 14 restrictions ended and 41 outstanding to address. M&S has five ended restrictions and agreed to address the remaining five. The CMA emphasized the importance of competition in the supermarket industry for consumers’ benefit.

Factuality Level: 10
Factuality Justification: The article provides accurate information about the CMA’s findings and actions against Morrisons and Marks & Spencer, includes quotes from a senior director at the CMA, and mentions the retailers’ responses to the situation. It does not contain any irrelevant or misleading information, sensationalism, redundancy, opinion masquerading as fact, bias, invalid arguments, logical errors, inconsistencies, or faulty reasoning.
Noise Level: 3
Noise Justification: The article provides relevant information about anti-competitive land deals made by Morrisons and Marks & Spencer, and includes quotes from the Competition and Markets Authority. It reports on the actions taken by the CMA to address these breaches and statements from a representative of the authority. The article is focused on the topic and supports its claims with evidence (the number of breaches and agreements made). However, it could benefit from more analysis or discussion of the impact of these restrictions on consumers and the market.
Financial Relevance: Yes
Financial Markets Impacted: Supermarkets industry
Financial Rating Justification: The article discusses anti-competitive land deals by Morrisons and Marks and Spencer, which impact the supermarkets industry and may affect competition and pricing in the market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event in the text, but the article discusses anti-competitive land deals by Morrisons and Marks & Spencer that breached the Groceries Market Investigation (Controlled Land) Order 2010. The impact is rated as Minor due to the focus on legal and regulatory compliance rather than direct harm or consequences.

Reported publicly: www.retailsector.co.uk