The commission has been examining key areas, including the conduct of grocery retailers, the structure of local grocery markets, the supply chain and planning and land banks of the four biggest UK supermarkets. Tesco, Asda, Sainsbury's and Morrisons control nearly three quarters of the UK grocery market.
The commission's full report will be published next year. So far, the inquiry has come up with minor problems, but no clear evidence of anti-competitive behaviour among the big four. It has also rejected claims that Tesco's market share could reach 43 per cent to 45 per cent.
The inquiry said: 'We are not here to punish success or individual retailers, but we are concerned with whether Tesco, or any other supermarket, can get into such a strong position, either nationally or locally, that no other retailer can compete effectively.'
Over the next few months, the inquiry will analyse in detail any evidence of below-cost selling and price flexing by retailers. It will assess the effects on smaller retailers, as part of the investigation into local areas, and will follow up on individual cases reported to them.
The inquiry has so far found no clear evidence that supermarket buyer power is reducing supplier innovation, having looked at food and drink manufacturers, wholesalers and primary producers. However, the assessment of primary producers has focused on dairy farming and pig meat, both of which have declined in numbers in recent years - indicating difficulties in these areas. The report said: '[The] picture so far of supply chain practices is varied and not always bad for the consumer.'
According to the report, Tesco holds most land, but other retailers are actively increasing their holdings and it will consider the implications of this as part of its analysis. However, the commission said it has receied conflicting evidence on the effect of planning controls, which it will investigate.
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