The Competition and Markets Authority has found that Tesco has been unlawfully stopping rivals from opening shops near its stores.
The watchdog is now calling for more power to penalise businesses that have breached competition rules.
The CMA had initially discovered that Tesco had been preventing landlords from letting properties to other supermarkets in 2018.
After it contacted Tesco, the supermarket reviewed all 5,354 of its land agreements and found 22 more breaches.
Tesco has now agreed to take remedial action for all affected land agreements, improve its internal processes and staff training to avoid future breaches, and ensure that all new land agreements are in line with the Groceries Market Investigation (Controlled Land) Order 2010.
It will also engage with external property lawyers to ensure that each new land agreement is subject to specific compliance checks.
The CMA said it will monitor Tesco’s progress and may take formal enforcement action if further breaches are found.
The watchdog is writing to Waitrose, Sainsbury’s, Asda, Morrisons, M&S and the Co-op, requesting evidence to show that their land agreements are not in breach.
If any supermarket is not compliant, the CMA said it will consider taking enforcement action.
Andrea Gomes da Silva, executive director, markets and mergers, at the CMA, said: “It’s unacceptable that Tesco had these unlawful restrictions in place for up to a decade. By making it harder for other supermarkets to open stores next to its branches, shoppers could have lost out.
“In the future, we want the ability to fine businesses if we find that they are in breach of our orders. That’s why we’ve called on the government for more powers.”
Tesco’s review found three restrictive covenants that could have prevented other tenants from opening competing stores near Tesco stores. These were at:
• Victoria Street, Hednesford, WS12 1BT
• Unit K Croft Retail Park, Bromborough, CH62 3PN
• Unit 5 West Durrington Centre, Worthing, BN13 3PB
There were also 20 agreements that allowed Tesco exclusive rights to sell groceries in certain areas for longer than the permitted five-year period, at:
• Horton Retail Centre, Epsom, KT19 8SP
• Great Suffolk Street, London, SE1 0NZ
• Mile End Road, London, E1 4UJ
• Oxford Road, Reading, RG1 7LA
• Chester Road, Northwich, CW8 1HA
• Rushey Green, London, SE6 4AS
• Wolseley Road, Plymouth, PL2 3BP
• Wellingborough Road, Northampton, NN1 4DL
• Pencoed, Mid-Glamorgan, CF35 5NH
• Saxmunden Road, Aldeburgh, IP15 5JA
• Askew Road, Shepherd’s Bush, W12 9AS
• Fore Street, Edmonton, N18 2XF
• Goodmayes Road, Rowallan, RM8 1XU
• Stainland Road, Halifax, HX4 8AD
• College Road, Harrow, HA1 1FB
• High Road, Kilburn, NW6 7QF
• Ladbroke Grove, London, W10 6HH
• New Cavendish Street, London, W1W 6BE
• High Street, Penge, SE20 7QB
• Brentwood Road, Romford, RM2 5TH
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