ACS Responds to Tesco Competition Commission Appeal
01 Jul 2008
ACS has reacted to an appeal lodged by Tesco Stores plc against the findings of the Competition Commission as published in the final report of the Grocery Market Inquiry on the 30th April 2008. ACS Chief Executive, James Lowman said: “Tesco’s appeal should be seen as an attempt to delay and subvert the outcome of the Inquiry.
“The Competition test is a timid remedy that would have almost no impact on the encroaching dominance of Tesco in all but a handful of places where they already have in excess of a colossal 60% market share. Tesco’s desire to quash even this indicates how divorced they have become from what is in the best long term interests of consumers. This is a stark indication that they will stop at nothing to stamp out choice in local markets.”
The Planning Competition Test remedy was made by the Competition Commission as a recommendation to Government. The proposal was put forward as a remedy in markets where the Commission concluded that ‘consumers get a poorer retail offer in terms of prices, quality and service than would otherwise be the case, while those grocery retailers with strong local market positions earn additional profits due to weak competition in those markets.’
This appeal will affect ongoing work by the Department for Communities and Local Government who are looking at this alongside further reform of town centre first planning policy. This appeal threatens to slow down the policy making process further and could be viewed as a spoiling tactic.
“The Competition test is a timid remedy that would have almost no impact on the encroaching dominance of Tesco in all but a handful of places where they already have in excess of a colossal 60% market share. Tesco’s desire to quash even this indicates how divorced they have become from what is in the best long term interests of consumers. This is a stark indication that they will stop at nothing to stamp out choice in local markets.”
The Planning Competition Test remedy was made by the Competition Commission as a recommendation to Government. The proposal was put forward as a remedy in markets where the Commission concluded that ‘consumers get a poorer retail offer in terms of prices, quality and service than would otherwise be the case, while those grocery retailers with strong local market positions earn additional profits due to weak competition in those markets.’
This appeal will affect ongoing work by the Department for Communities and Local Government who are looking at this alongside further reform of town centre first planning policy. This appeal threatens to slow down the policy making process further and could be viewed as a spoiling tactic.