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Page last updated at 22:40 GMT, Tuesday, 29 April 2008 23:40 UK

Supermarkets await final report

Morrisons, Asda, Sainsbury's and Tesco stores
The grocery sector was referred to the Competition Commission in May 2006

The Competition Commission is due to release its final report into the UK grocery market later.

The regulator has been consulting supermarkets, suppliers and others since it last reported in February.

It suggested changes to the planning system to make it harder for one supermarket chain to dominate a particular area.

It also called for a new ombudsman to deal with disputes between retailers and their suppliers.

The ombudsman would have the power to award compensation and would uphold a stronger supermarket code of practice (SCOP), which would cover all grocery retailers with turnover greater than £1bn.

A new code will also ban supermarkets from retrospectively changing the terms of contracts with suppliers.

Planning changes

The final report, due to be released at 0700 BST, comes at the end of a two-year investigation into the UK's supermarket sector, which is dominated by four major chains: Tesco, Asda, Sainsbury's, and Morrisons.

When the planned remedies were announced, campaigners said that they would do little to ease the plight of small shopkeepers on the High Street.

The planning recommendations also included measures to stop retailers imposing restrictions on who can build on land they sell off.

And local councils were advised to implement a competition test when deciding whether to give planning permission for new large supermarkets.

There is also a proposed five-year time limit on the exclusivity agreements between supermarkets and local authorities that prevent rivals setting up shop nearby.

However, the plans did not require supermarkets to sell land or stores.


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