The Competition and Markets Authority (CMA), the UK's competition watchdog, has reached agreements with supermarket chains Sainsbury's and Asda to put an end to their use of unlawful

land agreements. The CMA revealed that it had discovered 32 anti-competitive deals, whereby both retailers imposed restrictions to prevent rival stores from opening nearby.

According to the CMA, Sainsbury's violated the legislation 18 times between 2011 and 2019, while Asda breached it 14 times during the same period. In response to these findings, both supermarkets have agreed to remove the identified restrictions in their land agreements to ensure compliance with the legislation. Furthermore, measures have been put in place to prevent future breaches.

The CMA's actions aim to foster fair competition in the supermarket sector, enabling shoppers to benefit from greater choice, a wider range of groceries, and access to more affordable prices, particularly in light of rising living costs.

It is worth noting that Asda recently announced its plans to acquire the UK and Ireland business of EG Group, a petrol station operator. This acquisition would create a combined company with revenues of approximately £30 billion.

In April, Sainsbury's, the second largest supermarket group in Britain, reported an expected 5% decline in annual profit due to inflation affecting both the company and its customers. However, the company forecasts a better-than-expected performance for the current year, with projected profits between £640 million and £700 million.

The agreements reached with the CMA serve as a reminder to supermarkets of the importance of upholding fair competition and allowing rival stores to operate freely, ultimately benefiting consumers across the country. Photo by Rept0n1x, Wikimedia commons.