- CMA proposes bringing Aldi and Lidl under the UK's Controlled Land Order.
- The move aims to stop major supermarkets from restricting rival stores nearby.
- Aldi says the proposal will not affect its UK expansion plans, while Lidl says its growth strategy remains unchanged.
Aldi and Lidl could soon be brought under the same competition rules that already apply to Britain's biggest supermarket chains, as the UK competition watchdog moves to strengthen rules designed to protect consumer choice.
The Competition and Markets Authority (CMA) has provisionally proposed extending the Controlled Land Order to Aldi, Lidl GB and Lidl NI. If approved, the move would prevent the German discount retailers from using land agreements that could stop rival supermarkets from opening stores nearby.
The rules were introduced in 2010 to stop large grocery retailers from limiting competition through restrictive land agreements, such as exclusivity clauses or restrictive covenants. These agreements can make it difficult for competing supermarkets to secure nearby sites, reducing shoppers' choices in a local area.
The restrictions currently apply to seven supermarket groups: Asda, Co-op, Marks & Spencer, Morrisons, Sainsbury's, Tesco and Waitrose.
According to the CMA, Aldi and Lidl were not originally included because they operated smaller stores with a more limited range of products. However, the regulator believes both retailers have changed significantly over the past decade by expanding their store networks and increasing the size and range of their outlets.
Growth brings greater responsibility
The proposal reflects the growing influence of the two discount chains in the UK grocery market. Recent Worldpanel figures show Aldi has become the UK's fourth-largest supermarket with a 10.8 per cent market share, while Lidl ranks sixth with 8.8 per cent. Both retailers have steadily expanded across the country, attracting shoppers with lower-priced groceries and opening hundreds of new stores.
The CMA is now seeking further feedback before making a final decision.
Juliette Enser, executive director of competition enforcement and markets at the CMA, reportedly said the proposal was intended to ensure shoppers continue to benefit from a wide choice of supermarkets and competitive prices. She added, as quoted in a news report, that applying the same rules to Aldi and Lidl would help create a level playing field across the grocery sector.
Aldi said the provisional decision would not affect its long-term plans to continue expanding across the UK. A company spokesperson reportedly said the retailer remained committed to opening hundreds of new stores.
Lidl also signalled that the proposal would not alter its expansion strategy. A spokesperson reportedly said the company had always welcomed competition and would continue opening new stores while bringing its products to more communities.
The CMA is expected to review responses from retailers and other stakeholders before deciding whether Aldi and Lidl should formally join the list of supermarkets covered by the Controlled Land Order.
