Competition Commission to investigate supermarkets

The OFT has agreed that supermarkets are to face an inquiry into claims that they are forcing smaller stores out of business with unfair practices. The Competition Commission has been ordered to investigate allegations of price-rigging, the manipulation of development land and whether the planning system allows retailers to distort competition. OFT Press release 09/05/2006
Not a surprise to those of us who have been following the Tesco planning application. Unfortunately it may have come too late to save Sheringham. However, I have written to the inquiry asking them to investigate the Tesco legal agreement with the Council which prevents other supermarkets negotiating with the council for land. You can do the same by sending a letter to
The Inquiry Secretary (Groceries market inquiry)
Competition Commission
Victoria House
Southampton Row
London
WC1B 4AD

or email groceries@cc.gsi.gov.uk

In the detailed reasons the OFT states that Tesco now appears to have nearly twice the market share (in terms of overall grocery retailing)of its nearest competitor, more than 30% of the overall market. Surely, this alone is reason enough to prevent the further expansion of the Tesco empire.