Mark Jones comments in The Grocer on what the CMA land ruling means for Aldi and Lidl

Mark Jones, partner and grocery lawyer, has spoken to The Grocer about the Competition and Markets Authority’s (CMA) decision to bring Aldi and Lidl under the Controlled Land Order.

The ruling, delivered on 22 October, bans both discounters from using restrictive clauses in land deals to stop rival grocers opening nearby. The same rules have applied to Tesco, Sainsbury’s, Asda, Morrisons, Co-op, M&S and Waitrose since 2010.

Sampling carried out at the CMA’s request found these clauses in 10 per cent to 20 per cent of Lidl’s property agreements and 50 per cent to 60 per cent of Aldi’s.

Mark explained that once the order applies, both retailers will be obliged to remove restrictions that contravene it. If either had 200 in place, he estimated the legal costs of removing them could run from £400,000 to £1m, depending on how each restriction is registered.

He added that the bigger worry for the discounters is rivals moving into sites that were previously protected and taking some of their customers. “It’s not the cost of removing the restrictions which will bother Aldi and Lidl,” he said.

Mark also noted that Aldi and Lidl could still challenge the decision in the courts, pointing to the narrower product ranges they carry compared with other designated retailers. “The game isn’t necessarily up,” he added, though he thinks a challenge would be unlikely to succeed given their size.

Read the full article in The Grocer here.

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