Bid to lift grocery market competition

The UK's competition watchdog has unveiled a plan to shake up the £96 billion grocery market in order to boost competition.

The culmination of the Competition Commission's two-year probe into the sector will see a new 'competition test' in planning decisions on larger stores as well as action to prevent land agreements restricting competitors from entering the market.

The UK's four biggest supermarkets - Tesco, Sainsbury's, Asda and Morrisons - all came under scrutiny in the investigation.

Competition Commission chairman Peter Freeman said: "The size of the market, the number of parties involved and the range of issues examined all mean that this has been a major inquiry.

"We have looked extensively and listened very carefully when looking at all the matters raised with us but our overriding concern throughout has been whether the market is working well in the interests of consumers."

He added: "In many important respects, consumers are receiving the benefits of competition, such as value, choice, innovation and convenience, but we need to take appropriate action to address those areas where they could be served better and where their interests could be damaged in future."

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