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Investigations
Current
inquiries
Groceries
Market inquiry: latest news
 Groceries
Market inquiry: Background information
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Groceries Market
inquiry
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The market was referred
to us by the Office of Fair Trading on 9th May
2006. See OFT
to refer grocery market to Competition Commission.
This market reference follows an initial OFT study
into the sector and public consultation. Download: The
grocery market - The OFT's reasons for making
a reference to the Competition Commission.
The CC conducted
an inquiry into supermarkets back in 2000 but the current
inquiry includes the whole of the grocery retail
market in the UK . There has subsequently been
another
two inquiries involving
acquisitions
within
the
Grocery
market since 2000.
Title
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Date
Published
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Somerfield plc
/ Wm Morrison Supermarkets plc: A report on
the acquisition by Somerfield plc of 115 stores
from Wm Morrison Supermarkets plc
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2nd September 2005
Report
The CC had competition concerns
in 12 local markets, with the adverse effects
of higher prices to customers or reduction
in quality, range or service, and reduction
of choice between competing stores. To remedy
this, Somerfield was required to divest a
store in each of the 12 localities. Somerfield
applied to the Competition Appeals Tribunal
(CAT) for an order quashing those parts of
the report that dealt with divestment but
its application was dismissed.
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Safeway plc and
Asda Group Limited (owned by Wal-Mart Stores
Inc); Wm Morrison Supermarkets PLC; J Sainsbury
plc; and Tesco plc
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26th August 2003
Report
Summary and Full
Text
Overall, the CC concluded that,
if Safeway were to be acquired by Asda, Sainsbury’s
or Tesco, any of those acquisitions might
be expected to operate against the public
interest. With regard to the possible acquisition
of Safeway by Morrisons, the CC concluded
that it might be expected to have adverse
effects in particular local areas. Morrisons
gave undertakings to the OFT that it would
divest around 50 stores.
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Supermarkets:
A report on the supply of groceries from multiple
stores in
the United Kingdom charged nor excessive profits
earned.
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10th October 2000
Report
Summary and Full
Text
Overall, the CC concluded that the supermarket industry was broadly
competitive but identified a number of practices that it considered
operated against the public interest.
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