Progress on remedies
The Competition Commission (CC) is carrying our a second round of consultation on the new Groceries Supply Code of Practice (GSCOP). Comments on the revised draft order are requested by Monday 29 June.
The Competition Commission (CC) is now consulting publicly on draft Undertakings to establish an Ombudsman to arbitrate on disputes between retailers and suppliers and investigate complaints under the new Groceries Supply Code of Practice (GSCOP). The CC does not have the power to establish an Ombudsman itself, so this will require the agreement of retailers. If retailers do not sign up to the Undertakings, then the CC will recommend to the Department for Business, Innovation and Skills (BIS) that it takes steps to establish the Ombudsman instead.
The CC has published a draft Order outlining measures to prevent exclusivity arrangements and restrictive covenants being used by grocery retailers to restrict entry by competitors in order to improve competition in local areas.
The CC has also published a provisional recommendation to the OFT on the choice of software to be used to determine the area covered by each local market.
Revised remedies implementation administrative timetable
CAT appeal
On 30 June 2008, Tesco Plc lodged with the Competition Appeal Tribunal (CAT) a Notice of Application to appeal against the CC’s report.
A case management conference was held by the CAT on 31 July 2008, at which Waitrose Limited, Marks and Spencer plc and Asda Stores Limited were granted permission to intervene. A ruling on the Association of Convenience Stores’s application for an extension of time to intervene was handed down on 31 July 2008.
The main hearing took place from 11 November to 13 November 2008.
Judgment was handed down on 4 March 2009. A hearing to consider the question of relief took place on 16 March 2009.
Judgment on relief was handed down on 3 April 2009 in which the Tribunal quashed the Commission’s decision to make the recommendation in question and ordered that the matter be referred back to the Commission for reconsideration and a new decision.
The Commission has given an undertaking to the Tribunal to reconsider and reach a new decision within six months from the date of Order referring the matter back.
Also on 3 April 2009 a hearing took place to consider requests for permission to appeal. The Tribunal handed down its ruling refusing Tesco’s request for permission to appeal the same day.
For further details please visit the CAT website:
Tesco Plc v Competition Commission
The timetable for the CC's reconsideration of certain aspects of the competition test is now available in the Groceries remittal section.
Final report (April 2008)
The groceries
final report has now been
published. The report itself is available
from the
groceries market inquiry homepage. |
