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2/14, 3:48 PM (Source: TeleTrader)
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Tesco accused of stopping rivals from opening stores

The United Kingdom's biggest supermarket chain Tesco is being investigated for illegally blocking its supermarket rivals from opening shops near its stores, the Competition and Markets Authority (CMA) announced on Friday.

The CMA found irregularities in 23 cases when Tesco put in place some restrictive clauses, either to stop rivals from buying the land it was selling or enforcing the contract that other supermarket chains could not lease in the same building where the Tesco is lessee itself. The executive director of markets and mergers at the CMA Andrea Gomes da Silva commented: "It's unacceptable that Tesco had these unlawful restrictions in place for up to a decade. By making it harder for other supermarkets to open stores next to its branches, shoppers could have lost out."

Meanwhile, Tesco has abode by the critics agreeing to take action to stop this from happening in the future, blaming "administrative errors" but promised it was going to "strengthen its controls and training" and it will drop the offensive contracts altogether.

Breaking the News / BJ