The Competition and Markets Authority (CMA) has intervened to protect supermarket shoppers by obtaining agreements from Wm Morrison Supermarkets Limited (Morrisons) and Marks and Spencer plc (M&S) to discontinue unlawful anti-competitive land agreements. These agreements included restrictions that prevented rival supermarkets from utilizing certain land or imposed long-term restrictions on landlords, effectively blocking competition.

The CMA's investigation revealed that both Morrisons and M&S violated the Groceries Market Investigation (Controlled Land) Order 2010, which was established to prevent supermarkets from imposing new restrictions that could obstruct competitors from opening nearby stores. The CMA's actions are particularly significant in light of rising living costs, as they aim to ensure that supermarkets can compete freely, thereby providing shoppers with a wider selection of groceries and more affordable prices.

Specifically, Morrisons was found to have breached the Order 55 times between 2011 and 2020, while M&S had 10 breaches from 2015 to 2019. Although some restrictions have been lifted, Morrisons still has 41 outstanding restrictions to address, and M&S has 5 remaining. The CMA has communicated with both retailers regarding their breaches and the necessary steps to enhance compliance moving forward.

Adam Land, Senior Director at the CMA, emphasized the importance of competition among supermarkets, especially during financially challenging times for families. He stated that the restrictive agreements are unlawful and that there should be no excuses for non-compliance with the 2010 Order, given the positive impact of new stores on consumer choice.

This enforcement action is part of a broader initiative by the CMA to uphold the rules governing land agreements and maintain competition in the supermarket sector. The CMA has previously taken similar actions against other major retailers, including Tesco, Waitrose, Sainsbury’s, and Asda, for similar breaches. Additionally, the CMA is conducting a comprehensive review of competition in the grocery sector, focusing on both branded and own-label food suppliers.