Tesco and Asda have been ordered to hand over millions of emails after the Competition Commission (CC) has launched an investigation into complaints of potential supplier abuse.
Tesco and Asda have been asked to show the CC all correspondence with their suppliers during a period over the summer, according to the Financial Times, after the watchdog received allegations that the two retailers had acted in a “threatening and aggressive” manner in demanding discounts. Asda is expected to hand over 11 million emails.
The CC is especially concerned about a five-week period in June and July when the two supermarkets became engrossed in a price-cutting war.
The enquiry is focusing on subsequent demand for retrospective payments by the retailers, a common practice when suppliers adjust their pricing to the volume of goods actually sold.
The commission issued the two supermarkets with a section 109 notice two weeks ago, which overrides confidentiality issues, although no emails or letters have yet been exchanged.
The CC’s long-running enquiry is looking for evidence of misuse of power by the UK’s big four grocery retailers. The issue of retrospective payments is one of the main issues being examined by the CC.
Tesco has deided the use of threatening emails to its suppliers. “The allegation that threatening and aggressive emails have been sent has not been mentioned to us, despite numerous conversations with the CC on this matter,” said Tesco executive director Lucy Neville-Rolfe. “We understood the S109 was being used to get around confidentiality issues, so it is extraordinary to see the CC putting these prejudicial allegations into the media in this way.”
A spokesman for the CC confirmed that the S109 notices had been issued.
A spokeswoman for Asda said: “We are happy to meet the commission’s request.”
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