Regulator the Competition and Markets Authority has found that the Co-op unlawfully stopped competitors from opening shops near its branches.

The Co-op admitted to 107 breaches of the Groceries Market Investigation (Controlled Land) Order. The law was introduced in 2010 to stop grocers imposing restrictions stopping competitors from opening nearby.

Co-op has already remedied 104 of the anti-competitive land agreements and agreed to resolve the outstanding cases.

The regulator noted that the Co-op has almost 2,400 stores and controls a 5.2% market share, it also said it was “concerned that this substantial number of breaches demonstrates a significant failure of compliance for a business of Co-op’s size”.

CMA senior director of markets Daniel Turnbull said: “Restrictive agreements by our leading retailers affect competition between supermarkets and impact shoppers trying to get the best deals.

“We know that Co-op has made a considerable effort to amend all their unlawful agreements, given this Order has been in place since 2010. Co-op and the other designated retailers must make sure they do the right thing by their customers in the future.”

A Co-op spokesperson said: “This is a matter we take very seriously and we have taken all necessary action to ensure this issue is resolved and does not happen again.”

Topics