Morrisons and M&S have become the latest retailers to agree to stop ‘unlawful’ use of anti-competitive land agreements, prompted by a crackdown from the Competition and Markets Authority (CMA).
The CMA has taken action to stop supermarket giants from using anti-competitive land agreements, which include restrictions on land being used by a rival supermarket.
The regulatory body found that Morrisons and M&S breached the Groceries Market Investigation (Controlled Land) Order 2010.
The law was designed to ensure shoppers have access to a greater range and choice of groceries, as well as cheaper prices – all of which have become even more important as the cost of living rises.
The CMA found the grocery giants had violated the agreement 66 times, with Morrisons breaching the order 55 times between 2011 and 2020, and M&S breaching it 10 times between 2015 and 2019.
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The regulatory body noted that Morrisons had the “poorest compliance record with the Order that the CMA has seen to date” and had written to both supermarkets outlining the next course of action.
CMA senior director of remedies business and financial analysis Adam Land said: “At a time when the weekly shop is a source of financial pressure for many families, it’s crucial that competition between supermarkets is working well to help people get the best deals they can.
“These restrictive agreements by our leading retailers are unlawful. There can be no excuses made for non-compliance with an Order made in 2010, especially when we know the positive impact for shoppers of new stores on the high street.
“Our continued crackdown on these unlawful restrictions is part of our wider action to tackle the cost of living and ensure that people benefit from more competition and choice.”
In response, a M&S spokesperson commented: “We are disappointed that having worked closely with the CMA over the past three years, it has highlighted ten breaches, five of which are historic and expired.
“These have made no practical difference to the activity of our competitors or our tenants and did not adversely affect competition. We are remedying these immediately, continuing to work with the CMA, and have introduced tighter internal governance and compulsory training to prevent it happening again.”
Morrisons added: “We co-operated fully with the investigation and accept its findings. We now plan to rectify the outstanding breaches quickly.”
Last year, Sainsbury’s and Asda came under fire for similarly breaking the anti-competition rules.
