The UK Competition Commission releases results of its investigation on supermarkets and quantifies consumer welfare (Groceries market investigation)

In its provisional report of July 16, 2009, the Competition Commission (CC) has attempted to demonstrate to which extent a “cap in growth” of supermarkets in highly concentrated areas is beneficial to consumers. In its previous report 30 April 2008, the CC recommended that the expansion of supermarkets in highly concentrated areas be subject to a competition test (the Competition Test) which prohibits the opening of a new store or the extension of an existing store when certain thresholds are met. In practice, this remedy prohibits expansion for an incumbent operator where market shares are in excess of 60% and 3 or fewer fascias operate in the area. Following Tesco's successful appeal, the CAT held in a judgment of 4 March 2009 that the CC has not sufficiently demonstrated that the remedy