In a significant development, UK supermarket giants Morrisons and Marks & Spencer (M&S) have pledged to discontinue the use of unlawful land agreements, according to the Competition and Markets Authority (CMA). The regulator uncovered a total of 65 anti-competitive deals, including restrictions on land use by rival supermarkets and prolonged limitations preventing landlords from accommodating competing stores.
Morrisons, exhibiting the poorest compliance record, breached the rules 55 times between 2011 and 2020, while M&S had 10 breaches between 2015 and 2019. While some of Morrisons’ restrictions have concluded, the supermarket commits to addressing the remaining 41. Similarly, M&S has resolved five restrictions and committed to resolving the remaining five.
Adam Land, Senior Director of Remedies, Business, and Financial Analysis at the CMA, emphasized the unlawfulness of these restrictive agreements by leading retailers. He highlighted the importance of robust competition among supermarkets to benefit consumers seeking the best deals.
A spokesperson for Morrisons stated full cooperation with the investigation, accepting its findings and expressing plans to promptly rectify outstanding breaches. M&S did not provide an immediate comment.
This development follows the CMA’s identification of similar breaches by Sainsbury’s and Asda in June this year, along with Tesco and Waitrose in 2020 and 2022, respectively. The CMA is currently conducting a broader review of the groceries sector, with a recent announcement of an examination into supermarket loyalty scheme pricing.
