The UK’s Competition and Markets Authority (CMA) has formally classified Aldi and Lidl as “large grocery retailers” following its final decision.
The ruling covers Aldi Stores Limited, Lidl Great Britain Limited, and Lidl Northern Ireland Limited under the Groceries Market Investigation (Controlled Land) Order 2010.
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The designation bars both supermarket businesses from entering property agreements, specifically exclusivity terms and restrictive covenants, aimed at preventing competing food retailers from launching nearby sites.
Under the order, the companies are prohibited from adding these terms to any upcoming land agreements.
Existing agreements may also be examined by the CMA if a landowner, commercial developer, or competing supermarket asks the regulator to conduct a review.
This decision brings Aldi and Lidl under the identical statutory property constraints that have applied to Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury’s, Tesco, and Waitrose since 2010.
When the Controlled Land Order initially took effect in 2010, Aldi and Lidl were omitted because competition regulators categorised them as limited assortment discounters that carried narrower stock selections.
The regulator initiated a consultation on its provisional recommendations in August.
The regulator’s assessment rested on three considerations: both retailers now operate larger stores exceeding 1,000m² of shop floor space across Great Britain or Northern Ireland, and both offer a comprehensive grocery range, even though certain categories provide fewer options than at established large grocery retailers.
While rival grocers Morrisons, Waitrose, and Iceland submitted representations endorsing the designation, the CMA verified that no representations were filed by Aldi Stores Limited, Lidl Great Britain Limited, or Lidl Northern Ireland Limited.
According to the regulator, Aldi and Lidl each place within the top five supermarket chains by market share in the UK food and grocery sector, an industry valued at an estimated £222.7bn ($298.13bn).
CMA competition enforcement and markets executive director Juliette Enser said: ”We put in place rules to stop big supermarket chains from blocking rival stores opening in their area, and now those rules apply to Aldi and Lidl.
“This will help level the playing field and make sure shoppers get the best choice of products and prices in their area.”
