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land use restrictions - not so restrictive after all...?

6 July 2012

From 1 July, businesses can apply to the OFT to remove land use restrictions that limit competition against any of the UK’s seven largest grocery retailers.

This measure has been put in place by the OFT following the Groceries Market Investigation (Controlled Land) Order.

This Order was made because when the Competition Commission investigated the grocery market it found that the existence of certain restrictive covenants and exclusivity arrangements sheltered these supermarkets from local competition.

This new procedure will allow the OFT to determine whether a restrictive covenant or an exclusivity arrangement benefitting any of these seven supermarkets should be lifted.

The press are full of stories on how the supermarkets are dominating the market. Therefore, the OFTs decision to intercept should be welcomed by both rival grocery outlets and consumers.

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