Groceries market investigation: remittal of the competition test by the Competition Appeal Tribunal, decision (Competition Commission)

 
9780117063983: Groceries market investigation: remittal of the competition test by the Competition Appeal Tribunal, decision (Competition Commission)

The Commission's final report on the groceries market published in 2008 (ISBN 9780117038547). In March 2009, an appeal by Tesco to the Tribunal against the competition test recommended in that report was upheld and the matter was referred back to the Competition Commission (CC) for further consideration, particularly on the costs and benefits of the competition test. The CC carried out further analysis on the effectiveness, benefits, costs and proportionality of the competition test. It now formally recommends that the Department of Communities and Local Government, and the devolved administrations in Scotland, Wales and Northern Ireland, take the necessary steps to introduce a competition test in planning decisions on larger grocery stores. The competition test would prevent supermarkets' groceries developments, including extensions to existing stores, by retailers with a strong presence in a local area, to make competing developments from rival retailers easier. The CC modified the competition test, following consultation on its provisional decision in July 2009, to allow all retailers to make small groceries extensions to stores-one extension per store of up to 300 sq metres of groceries sales area-provided that the store in question has not been extended in the previous five years. The CC believes that this modification will not significantly reduce the effectiveness of the test but will recognize the fact that such small extensions, if prevented by the test, would be less likely to prompt a rival development.

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Great Britain: Competition Commission
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