Competition Authority Discovers Co-op’s Unfair Practices
- Co-op admitted to unlawfully blocking over 100 rival supermarkets from opening near its stores
- CMA found that Co-op breached an order limiting retailers’ ability to prevent nearby land being used by competition
- Blocking other supermarkets affects competition and reduces consumer choice for better deals
- CMA raised concerns over significant failure of compliance for a business of Co-op’s size
- Co-op has addressed 104 agreements, agreeing to resolve the remaining three
- CMA senior director Daniel Turnbull emphasized on retailers’ responsibility towards customers
The Co-op has admitted to unlawfully blocking over 100 rival supermarkets from opening near its stores, as found by the Competition and Markets Authority (CMA). The convenience store chain had breached an order that limits retailers’ ability to prevent nearby land being used by their competition. The watchdog stated that this action restricts competition and reduces consumer choice for cheaper prices. The CMA expressed concerns that these 107 breaches demonstrate a significant failure of compliance for a business of Co-op’s size. The retailer has already addressed 104 agreements and agreed to resolve the remaining three. CMA senior director of markets, Daniel Turnbull, said, ‘Restrictive agreements by our leading retailers affect competition between supermarkets and impact shoppers trying to get the best deals. We know that Co-op has made a considerable effort to amend all their unlawful agreements, given this Order has been in place since 2010. Co-op and other designated retailers must ensure they do the right thing by their customers in the future.’ A spokesperson for Co-op told Retail Gazette, ‘As a business that is committed to operating fairly, we recognize this is extremely disappointing. Co-op operates in various markets, both as a community retailer and a national funeral provider, and the number of breaches amount to less than 2% of transactions across our entire property portfolio. This issue is taken seriously, and necessary actions have been taken to ensure it does not happen again.’
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Co-op’s breaches of an order limiting its ability to prevent nearby land being used by competition. It includes quotes from the CMA and a spokesperson for Co-op, and discusses the impact on consumers. However, it contains some repetitive information and ends with an unrelated mention of WHSmith.
Noise Level: 3
Noise Justification: The article provides relevant information about Co-op’s breach of an order and its impact on competition, along with the company’s response and commitment to resolving the issue. It also includes a quote from CMA senior director Daniel Turnbull. However, it contains some unrelated information at the end regarding WHSmith’s presence on the high street, which is not directly related to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the Co-op’s unlawful blocking of rival supermarkets, which impacts competition and consumer choice in the retail market. However, there is no direct mention of financial markets or specific companies being impacted.
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.
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