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| Version 4 | Version 5 |
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| Probe says 'too few supermarkets' | Probe says 'too few supermarkets' |
| (20 minutes later) | |
| A revamp of the planning system to allow greater competition between UK supermarkets has been called for by the Competition Commission. | A revamp of the planning system to allow greater competition between UK supermarkets has been called for by the Competition Commission. |
| In its preliminary report it suggests forcing supermarkets to sell land they own in areas where there are not enough different chains of retailers. | In its preliminary report it suggests forcing supermarkets to sell land they own in areas where there are not enough different chains of retailers. |
| But the report said that in most areas the UK groceries market was delivering "a good deal for consumers". | But the report said that in most areas the UK groceries market was delivering "a good deal for consumers". |
| The commission also called for further measures to protect suppliers. | The commission also called for further measures to protect suppliers. |
| It certainly looks like anti-competitive behaviour on a magnificent scale Robert Peston, BBC Business Editor Read Robert Peston's blog class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=3757&edition=1&ttl=20071031081932">Have Your Say: do we need more supermarkets? | |
| "We are not happy with everything that is going on between supermarkets and their suppliers," Peter Freeman, chairman of the Competition Commission told the BBC. | "We are not happy with everything that is going on between supermarkets and their suppliers," Peter Freeman, chairman of the Competition Commission told the BBC. |
| "In general, a healthy tension is a good thing for consumers but we are concerned about some aspects," he added. | "In general, a healthy tension is a good thing for consumers but we are concerned about some aspects," he added. |
| Encouraging complaints | Encouraging complaints |
| The report said it was concerned about retailers being able to transfer unexpected costs to their suppliers. | The report said it was concerned about retailers being able to transfer unexpected costs to their suppliers. |
| The commission will consult retailers and suppliers about how best to deal with this problem. | The commission will consult retailers and suppliers about how best to deal with this problem. |
| There is already a code of practice for the treatment of suppliers, which was set up after the commission's last report on the sector in 2000. | There is already a code of practice for the treatment of suppliers, which was set up after the commission's last report on the sector in 2000. |
| One question is whether suppliers need to be encouraged to complain about their treatment by retailers and how to go about doing so, perhaps by offering them anonymity. | One question is whether suppliers need to be encouraged to complain about their treatment by retailers and how to go about doing so, perhaps by offering them anonymity. |
| The report dismissed suggestions that the market-leader, Tesco, is too strong, saying: "Tesco is not in such a strong position that other retailers cannot compete". | The report dismissed suggestions that the market-leader, Tesco, is too strong, saying: "Tesco is not in such a strong position that other retailers cannot compete". |
| It pointed to the fact that other grocers are still expanding as evidence that Tesco is not too powerful. | It pointed to the fact that other grocers are still expanding as evidence that Tesco is not too powerful. |
| Supermarkets ombudsman | Supermarkets ombudsman |
| There will also be consultation on whether having an supermarkets ombudsman would be a good idea. | There will also be consultation on whether having an supermarkets ombudsman would be a good idea. |
| Peter Kendall, president of the National Farmers' Union, supported the suggestion of an independent voice that could hold retailers to account. | Peter Kendall, president of the National Farmers' Union, supported the suggestion of an independent voice that could hold retailers to account. |
| Check Tesco's shares Check Sainsbury's shares Check Wm Morrison's shares | Check Tesco's shares Check Sainsbury's shares Check Wm Morrison's shares |
| "We try to do it as a farmers' organisation. It's important we have a fair and balanced relationship with the retail sector," he said. | "We try to do it as a farmers' organisation. It's important we have a fair and balanced relationship with the retail sector," he said. |
| The commission found that consumers have good choice between retailers in most areas, "but in a number of local areas more competition would benefit consumers". | The commission found that consumers have good choice between retailers in most areas, "but in a number of local areas more competition would benefit consumers". |
| It suggests introducing a competition test into the planning process that will allow the position of existing supermarkets to be taken into account. | It suggests introducing a competition test into the planning process that will allow the position of existing supermarkets to be taken into account. |
| Selling land | Selling land |
| It is also considering rules to stop retailers using restrictive covenants when they sell land that make it less likely that rival shops can be built there. | It is also considering rules to stop retailers using restrictive covenants when they sell land that make it less likely that rival shops can be built there. |
| It may also decide that any land owned by supermarkets must be sold if it is not developed within a certain amount of time. | It may also decide that any land owned by supermarkets must be sold if it is not developed within a certain amount of time. |
| Such measures would be designed to deal with allegations of "land-banking", which is the practice of buying up land near a store to prevent a competitor being able to open an outlet nearby. | Such measures would be designed to deal with allegations of "land-banking", which is the practice of buying up land near a store to prevent a competitor being able to open an outlet nearby. |
| The report from the Competition Commission is not final. | The report from the Competition Commission is not final. |
| Supermarkets will have the opportunity to respond to its findings before the final recommendations are published in March 2008. | Supermarkets will have the opportunity to respond to its findings before the final recommendations are published in March 2008. |