Competition Commission Findings In - Have the Supermarkets Escaped?

Wednesday's findings from the Competition Commission enquiry into the UK grocery market have taken some digestion (like past-it's-sell-by-date meat?).

The main findings were reported by lots of media outlets - this article from the Daily Telegraph is fairly representative. Although the report is only an interim one, there appear to be two main steps that will be taken against supermarket domination - supermarkets will be assessed on their market share of local towns, and some form of ombudsdman will be introduced to try to sort out relationships between supermarkets and their suppliers. Against this, it looks like, as predicted, the local 'needs test' will be removed from development.

The first of these - local market shares - does look set to affect Tesco in a number of areas and benefit some anti-Tesco campaigns. The Cambridge Evening News reports that Tesco, which has a 51% share of the local grocery market, may face greater opposition in its plans for a further store in Mill Road. However, we're worried that the removal of the 'needs test' may give Tesco a great advantage over the planning system where it does not dominate the local market.

Some commentators were not happy with the Competition Commission report. Andrew Simms, policy director at the New Economics Foundation think tank, told icWales,

“[The Competition Commission] came to a conclusion that will increase the collective dominance of supermarkets. We need more supermarkets like Richard Branson needs more publicity.”

Have your say on the Competition Commission in our new poll (top right).