Government Should Deliver Competition Test


02 Oct 2009
 

ACS has called on Government to act swiftly to implement the competition test recommended by the competition commission.

ACS Chief Executive James Lowman said: "ACS has supported the competition test since it was first proposed; we believe that it can play a role in ensuring more competition in the grocery market. However this measure is not a panacea for the competition failings of a market dominated by a handful of major supermarkets.

”Now the commission has made its recommendation the Government have to deliver."

The Competition Commission's final recommendation follows a detailed review of the benefits and costs of the test. This was made necessary by a ruling of the Competition Appeal Tribunal in a case brought by Tesco on the evidence base behind the proposed test. The test would block supermarket developments by retailers already powerful in a local area, in order to make room for competing stores from rival retailers.

ACS was an intervening party in the case that Tesco brought against the Competition Commission, supporting the Competition Test. The test would prevent stores with more than 60% market share in a local market from expanding their dominance through building new stores or floor space.

Government now has 90 days to respond to the Commission.

 


Contacts:

Shane Brennan Public Affairs Director
01252 515001/ 07921 372 978

Nina Collins Communications Coordinator
01252 515001


Notes to Editors:

1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,500 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.