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19/08/2010
Supermarkets Ruled 'Anti-Competitive'
Local supermarkets have been 'found guilty' of anti-competitive practice, but have been given several years to put their respective houses in order.
The retailers have each signed up to a deal with their landlords to exclude competitor businesses from operating in their particular location.
A total of eight supermarkets were identified by the UK's Competition Commission as operating under anti-competitive exclusivity agreements.
They were found by the Commission to have arrangements with landowners which the Commission said "prevent, restrict or distort" competition.
Now, following an order made by the Competition Commission, the supermarket multiples - of which Tesco, Asda and Sainsbury's all operate in the Northern Ireland each have five years to lift the exclusivity arrangements.
Three local Sainsbury's were found to have the anti-competitive arrangements in place.
One is their store in Newry's Quays Shopping Centre which is in an agreement with landlord Parker Green International, with a second unit in Ballymena's Braidwater Retail Park, belonging to Sam Morrison, and a third in Armagh's Mall Shopping Centre, owned by Drumragh Property Investments.
Also, four Tesco stores also had similar arrangements, one in Portadown's Meadow Centre, Abbey Retail Park in Newtownabbey, their store in Limavady and the business in Cookstown.
One Asda supermarket in Downpatrick also had the restriction in place, although the Commission also identified stores carrying exclusivity arrangements deemed not to restrict competition, including Sainsbury's stores in Coleraine and Craigavon.
The measures against restrictive covenants and exclusivity are the latest development in a two-year investigation by the Commission into the grocery industry.
(BMcC/KMcA)
The retailers have each signed up to a deal with their landlords to exclude competitor businesses from operating in their particular location.
A total of eight supermarkets were identified by the UK's Competition Commission as operating under anti-competitive exclusivity agreements.
They were found by the Commission to have arrangements with landowners which the Commission said "prevent, restrict or distort" competition.
Now, following an order made by the Competition Commission, the supermarket multiples - of which Tesco, Asda and Sainsbury's all operate in the Northern Ireland each have five years to lift the exclusivity arrangements.
Three local Sainsbury's were found to have the anti-competitive arrangements in place.
One is their store in Newry's Quays Shopping Centre which is in an agreement with landlord Parker Green International, with a second unit in Ballymena's Braidwater Retail Park, belonging to Sam Morrison, and a third in Armagh's Mall Shopping Centre, owned by Drumragh Property Investments.
Also, four Tesco stores also had similar arrangements, one in Portadown's Meadow Centre, Abbey Retail Park in Newtownabbey, their store in Limavady and the business in Cookstown.
One Asda supermarket in Downpatrick also had the restriction in place, although the Commission also identified stores carrying exclusivity arrangements deemed not to restrict competition, including Sainsbury's stores in Coleraine and Craigavon.
The measures against restrictive covenants and exclusivity are the latest development in a two-year investigation by the Commission into the grocery industry.
(BMcC/KMcA)
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