15-02-2008
Supermarket price undercutting to stop under new plans
The UK's Competition Commission is expected to confirm a number of recommendations to help protect independent retailers against dominant behaviour by supermarkets, it has emerged.
Reports have confirmed that the commission, which previously went under the name of the Monopolies and Mergers Commission, is likely to announce measures designed to protect SMEs from action by larger supermarkets to artificially reduce prices and develop small-scale monopolies.
Under the expected measures, any dramatic price reductions could lead to the imposition of fines.
"A lack of competition in certain local markets not only disadvantages consumers in those areas, but also allows retailers to weaken their offer to consumers nationally," said the commission.
It is thought likely that the proposals will recommend the creation of an ombudsman, charged with the role of supervising the interaction between suppliers and the four largest supermarkets operating in the UK.
The four supermarkets identified in the report are Tesco, Morrisons, Asda and Sainsbury's.