Key facts
- UK supermarkets Waitrose, Morrisons and Iceland want the CMA to tighten land rules for Aldi and Lidl.
- The retailers argue current exemptions for discounters create an unfair advantage.
- Aldi and Lidl are currently exempt from rules preventing grocers from blocking competition through land agreements.
- The CMA is expected to publish its final decision in September.
Supermarket giants including Waitrose and Morrisons have welcomed the competition watchdog’s decision to crack down on Aldi and Lidl. Sainsbury’s, Morrisons and Iceland have urged the Competition and Markets Authority (CMA) to tighten land rules for Aldi and Lidl, arguing the current system gives the German discounters an unfair advantage. The retailers want regulators to prevent Aldi and Lidl from using restrictive property covenants that can limit rival stores opening nearby. The CMA introduced the Controlled Land Order in 2010 to stop major grocers from blocking competition through land agreements, but Aldi and Lidl were exempt at the time due to their status as limited-assortment discounters. Iceland chief executive Richard Walker criticized the existing framework, saying it is “rigged in favour of the German retailers”. Sainsbury’s warned the regulatory gap could allow Aldi and Lidl to expand more quickly than competitors, arguing the distinction between full-range supermarkets and discounters is no longer appropriate. Aldi defended its model, noting it does not operate online shopping, counters or 24-hour stores. The CMA is expected to publish its final decision in September.