Is another competition investigation for the groceries sector a possibility?

Is this Financial Times article, and similar others over the past weeks, that highlight rising prices (and profits) at grocery stores trying to prompt a competition investigation? 

It is 12 years since the UK’s competition authority investigated the groceries retail market, seven years since it acted in response to a complaint regarding pricing in the groceries market and just three years since it blocked the merger between Asda and Sainsbury. The Competition and Markets Authority (CMA) in February designated Amazon as a grocery retailer, meaning it will now be subject to the Groceries Market Investigation Order – sector rules intended to protect UK (farm) suppliers.

With inflation in the UK currently at 7%, there is political pressure to control costs. Grocery remains an important element of the inflation index and so it might be considered a target. However, transport among other sectors made a stronger contribution to the increase in inflation compared to the groceries sector – according to the government’s latest consumer price inflation data – so other sectors may be closer to the CMA's cross-hairs.


This information is for general information purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. Please contact us for specific advice on your circumstances. © Shoosmiths LLP 2024.



Read the latest articles and commentary from Shoosmiths or you can explore our full insights library.