Morrisons and M&S have become the latest retailers to be rapped for the unlawful use of anti-competitive land agreements that prevent rivals from opening stores near their own.
The pair have vowed to stop the practice after regulator the Competition and Markets Authority (CMA) found 65 agreements which restricted local competition.
It follows similar breaches by Tesco, Waitrose, Sainsbury’s and Asda, which have all previously been called out by the CMA.
Morrisons was found to have breached the order 55 times between 2011 and 2020, and The CMA said it had the “poorest compliance record” it had seen with the rules.
The grocer has already ended restrictions in 14 of the cases and has vowed to address the remaining 41 restrictions.
Morrisons said: “We co-operated fully with the investigation and accept its findings. We now plan to rectify the outstanding breaches quickly.”
M&S breached the law 10 times between 2015 and 2019.
An M&S spokesperson said: “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.”
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CMA senior director of remedies business and financial analysis Adam Land said the crackdown was part of its work to tackle the cost-of-living crisis and ensure that consumers benefit from more competition and choice.
“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,” he said.
“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.
It comes amid increased scrutiny on the retail industry by the CMA. Last month it reported that three in four companies that make branded grocery products have hiked their prices faster than their costs have gone up.
The CMA also revealed it would kick off a review of supermarket loyalty schemes in January 2024, which will centre around only offering promotions to loyalty members.
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