The Competition Commission has bowed to pressure, and will now be including supermarkets dealings with their suppliers in the remit of its inquiry into the UK grocery supermarkets sector.

The CC today published an issues statement, which identifies the specific questions and areas the inquiry intends to examine. The CC has been asked to investigate if any features of this market prevent, restrict or distort competition and if so, what action might be taken to remedy these.

The full statement is available on the CC website at: www.competition-commission.org.uk and identifies a number of issues relating to competition, including the supply chain, as well as retail competition in local markets and the planning regime.

Peter Freeman, inquiry chairman said: “We have chosen to publish this issues statement earlier than is our usual practice so as to help those taking part in this investigation to see our approach and get a clear idea of the issues we think need examining. It also shows that we mean to carry out this investigation quickly as well as comprehensively. We are well aware of the burden and uncertainty caused by an inquiry like this, so we are sure that all parties will be as keen as us on a swift conclusion - we trust we can rely on their cooperation to achieve this.

“The issues statement also makes it clear that it is competition issues that we will be looking at. We know there are many issues of more general public concern surrounding the grocery market. We will listen to evidence on these, but our concern must be with their impact on competition; we hope those who provide evidence to us will focus on that,” he said.

“For us to do our job properly, we need people to come forward and provide us with evidence. We know there are concerns about preserving the anonymity of those giving evidence to us, but I must stress that we are very well practised in dealing with confidential material and protecting the identity of parties who provide submissions, where this is requested. Many parties have already helped us by sending in evidence and I would urge other people to come forward.

“This issues statement does not in any way represent a final judgment on any aspect of this investigation. We have not made our minds up about anything. Rather, we are still open minded and very keen to listen to any evidence, views or submissions.”

The CC is considering whether features of this market or markets prevent, restrict or distort competition. If so, it will find an adverse effect on competition and consider whether action should be taken to remedy or prevent the adverse effect or any resulting adverse effect on customers in the form of higher prices, lower quality or less choice of goods and services, or less innovation. The CC is required to publish its final report by

May 8, 2008, but is aiming to complete its work by October 2007.

The CC would like to hear from all interested parties, in writing. To submit evidence, email: Groceries@cc.gsi.gov.uk or write to: The Inquiry Secretary (Groceries Market inquiry), Competition Commission, Victoria House, Southampton Row, London, WC1B 4AD.

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