ACS

ACS has expressed frustration following the Government’s response to the Competition Commission’s Final report on the Grocery Market Inquiry. ACS Chief Executive, James Lowman said: “The Government's failure to come out in support of the Competition Commission’s recommendations into the grocery market, will delay action being taken and harm consumers.”

The Government response covers the three main recommendations made to it by the Inquiry team. They have stated:

- on the supermarket ombudsman - the Government will await the outcome of discussions between the CC and its grocery retailers about the establishment of the Ombudsman. They say ‘should no voluntary agreement be possible and the matter come back to Government, HMG would make any assessment primarily based on what is likely to be in consumers’ best interests' 
- on planning - they explain that in light of the legal appeal against the recommendation launched by Tesco they have to await the outcome before taking any further action 
- on land holdings - their intention to consult on changing the rules on restrictive covenants

Mr Lowman continued: “It is on the issue of a supermarket Ombudsman that the lack of Government leadership is of most concern. The Commission is seeking voluntary agreement with the major retailers to submit themselves to this new regulator, because they have no alternative. They set out clearly that if no voluntary agreement is possible the Ombudsman should be imposed by legislation. Government, by failing to endorse the Commission’s position, has undermined their ability to negotiate and made it far less likely that the big retailers will agree to a voluntary solution.

“An Ombudsman, that is effective and has teeth, is vitally important in a grocery market that is increasingly consolidated. The Government’s lack of leadership in this area threatens to delay and ultimately harm the interests of consumers.”

Mr Lowman also commented on the planning competition recommendation: “We have made clear our view that Tesco’s appeal was a delaying tactic. The Government decision to defer action shows that they have been successful. It is now vitally important that the appeal is resolved quickly and the Commission’s recommendations can be implemented as intended.”