J Sainsbury’s PLC and Asda Stores Ltd have agreed to address more than 30 anti-competitive land agreements, the UK Competition & Markets Authority said on Tuesday.

The regulatory authority said the land agreements of the supermarket chains prevented rivals from opening nearby.

‘These unlawful agreements include placing restrictions on land they own from being used by a rival supermarket, or imposing restrictions lasting five years or more that stop landlords from allowing competing stores on land in the same block as an existing supermarket,’ it explained.

It found that on 18 occasions, Sainsbury’s breached the Groceries Market Investigation (Controlled Land) Order 2010, while Asda breached it 14 times, both between 2011 and 2019.

David Stewart, executive director, Markets & Mergers at the CMA said: ‘Restrictions of this nature are against the law, cause real harm to shoppers and will not be tolerated. This is particularly important at a time when many families are struggling to pay their weekly grocery bills. With families under increasing pressure, it is even more critical that competition between supermarkets is helping people to get the best deal.’

Stewart added: ‘This enforcement action today is part of our wider action to tackle the cost of living and ensure that families really benefit from more competition.’

The CMA said that Tuesday’s action is part of a programme to enforce rules on land agreements. It referred to action taken against Tesco PLC in 2020, which it found broke the order 23 times, and Waitrose & Partners in 2022, which broke it seven times.

Sainsbury’s shares were trading flat at 269.80 pence in London on Tuesday.

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