Tesco told not to block rival supermarketsUK’s biggest supermarket chain Tesco has been allegedly accused of hampering the business of its rival companies by not allowing them to buy land or lease a site.
An investigation done into the matter revealed that it had been found on 23 times guilty of blocking access to its rivals buying plots using restrictive contracts. Tesco had agreed that the same mistakes would not again be repeated in the future.
The company had blamed it on some poor administrative decisions ad said that it had improved the staffs and employees to take better actions by giving them proper training.
The investigation done by the Competition and Markets Authority found that at least on three different occasions Tesco had put in restrictive contracts while selling its own plot so that any other rival supermarket chain would not be able to buy it.
On other 20 different occasions, it was found that when Tesco was leasing land from an owner it would make such a contract that would force the owner so that other rival supermarket companies would not be able to lease on the same building at least for 20 years.
According to the law, companies can ask the landlord for such contracts but for a maximum period of five years.
The executive director of markets for the CMA told the media that such unacceptable terms and conditions in contracts is not acceptable and had been used by Tesco since the last decade. It is not alone in the hands of a supermarket company to dictate the law and it cannot override the rules.
Such laws are there to ensure fair competition among the retail supermarkets and ensure that fair trade and the rules and practice flowed all the time. It is to be seen now whether any fine is imposed on Tesco by the market governing body.