A report in the Sunday Telegraph suggests that the Competition Commission will side with suppliers this week and admit that they need more protection in their dealings with the UK’s supermarkets.

The Competition Commission is due to publish initial findings of its 18-month probe into Tesco, Asda, Sainsbury's and Morrisons.

“Farmers will win a key battle against "bullying" supermarkets this week as a government watchdog supports their argument that suppliers need more protection,” said the report.

The Competition Commission, it claimed, will propose the installation of a tough independent moderator following allegations that Tesco and Asda had abused their buying power by sending threatening emails to small suppliers.

On the flipside, however, the commission's preliminary report on its investigation of the big four could be bad news for independent shopkeepers, with more large supermarkets possibly resulting from an adaptation of planning laws to counter the dominance of Tesco.

“Rivals have argued that current planning regulations act to reinforce Tesco's market lead. The commission is therefore likely to suggest a shake-up of the planning system to make it easier for rivals to open stores,” said the ST.

The watchdog could propose a "fascia" or competition test - guiding local authorities to give preference to those who do not have a presence in the area, and also taking into account independent stores.

It may also propose scrapping measures that make it harder for firms to move to an area where they don't have a presence. Currently a new entrant to a local market must prove that an area requires a new supermarket - a policy that is seen by many to favour chains that are already established there.

Topics