This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6287923.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
UK supermarkets await key inquiry UK grocers face competition probe
(20 minutes later)
Competition watchdogs are preparing to publish key points in an inquiry into Britain's supermarket sector. The control of land by Britain's supermarkets is set to be highlighted in a key Competition Commission report.
Supermarkets' control of land is likely to be highlighted in the Competition Commission's outline report on Tuesday. Campaign groups have criticised supermarkets including Tesco for owning large areas of undeveloped land across the UK, stifling potential competition.
Critics have accused supermarkets of using so-called land banks to prevent rivals from entering local markets, something the firms deny. But the supermarkets argue their ownership of so-called "land banks" has not distorted competition.
The report will also set out initial findings on whether aggressive pricing is forcing small shops out of business. The outline report is also expected to examine whether aggressive pricing is forcing small shops out of business.
Supermarket giants Tesco, Asda, Sainsbury's and Morrisons control almost 75% of the UK grocery market. Tesco, Asda, Sainsbury's and Morrisons control almost 75% of the UK grocery market.
Watchdogs have previously said that the buying power of big supermarkets could distort competition. Watchdogs have previously said that the buying power of the big supermarkets could distort competition.
Property concernsProperty concerns
Tesco, which accounts for £1 in every £3 spent in the UK on groceries, currently has the largest land development portfolio of the major supermarkets.
At least two of the Competition Commission inquiry's six panel members want Tesco to give up some of the land it owns for further development, according to a recent Sunday Times report.At least two of the Competition Commission inquiry's six panel members want Tesco to give up some of the land it owns for further development, according to a recent Sunday Times report.
class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23225/intraday.stm">Check Tesco's shares class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23210/one_month.stm">Check Sainsbury's shares class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23191/one_month.stm">Check Morrison's shares class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/2/15652/one_month.stm">Check Walmart's shares Tesco has largest land development portfolio of the supermarkets
But Tesco, the UK's largest supermarket with a market share of more than 30%, has vigorously defended its position and said that it does not believe it has done anything wrong.But Tesco, the UK's largest supermarket with a market share of more than 30%, has vigorously defended its position and said that it does not believe it has done anything wrong.
It said it would be "surprised" if the probe into the UK's supermarkets called for it to sell off some of the undeveloped sites it owns.It said it would be "surprised" if the probe into the UK's supermarkets called for it to sell off some of the undeveloped sites it owns.
The Competition Commission "emerging thinking" document is not expected to single out any supermarket at this stage, as the organisation has until 2008 to complete its findings. The Competition Commission's "emerging thinking" document is also expected to examine the relationship between the big supermarkets and suppliers, amid allegations that supermarkets' buying power has increased.
It is also examining the relationship between the big supermarkets and suppliers, amid allegations that their buying power has increased.
Further claims that the retail giants are distorting competition through their pricing behaviour - such as below-cost selling and price flexing - are also being investigated.Further claims that the retail giants are distorting competition through their pricing behaviour - such as below-cost selling and price flexing - are also being investigated.
The Competition Commission's full report is expected to be published next year.