New competition laws on supermarket planning applications and land disposals come into force

New laws that apply competition rules to planning decisions for the first time came into force last week, banning local authorities and private landlords from striking deals with supermarkets to prevent rivals from setting up shop nearby.

Conditions on the sale of land and property by supermarkets which prevent their use by rivals – so-called 'lock-out' deals - have also been outlawed, except where it can proved that local consumers would not suffer.

The new rules, introduced under the Enterprise Act 2020, follow a Competition Commission enquiry into the grocery market, the results of which were published in 2008.

This found that some supermarkets were putting together deals with landlords and local authorities which were anti-competitive. The same inquiry also recommended the introduction of a 'competition test' to planning applications to make it harder for the supermarkets to open new stores in areas where they are already dominant, but this proposal has yet to be adopted by the new government.

The full Order from the Competition Commission can be viewed here:

http://www.competition-commission.org.uk/inquiries/ref2006/grocery/pdf/controlled_land_order_100810.pdf