LONDON: Britain’s Competition and Markets Authority (CMA) has provisionally proposed extending existing supermarket land agreement rules to discount retailers Aldi and Lidl, a move aimed at increasing competition and expanding consumer choice.
The regulator said the proposal would prevent Aldi and Lidl from using restrictive covenants and exclusivity agreements to stop competing supermarkets from opening nearby stores, bringing the two retailers under the same framework that already applies to major supermarket chains.
Competition rules under review
The CMA said the proposed changes would align Aldi and Lidl with other leading UK grocers, including Tesco, Sainsbury’s, Asda, Morrisons, Co-op and Waitrose, which are already subject to restrictions governing land agreements.
The regulator said the measures are intended to promote greater competition in the grocery sector by preventing practices that could limit market access for rival retailers.
Consultation process continues
The proposal is provisional and will be subject to further consultation before a final decision is made. If implemented, Aldi and Lidl would be required to comply with the same land agreement rules as other major supermarket operators across the UK.