The Competition and Markets Authority (CMA) has provisionally decided that Aldi, Lidl GB and Lidl NI should be subject to the same rules as other major supermarkets regarding land agreements, which prevent large retailers from blocking rivals from opening nearby stores.
In a statement on Friday, the CMA said it had "provisionally found" that the three budget retailers were 'Large Grocery Retailers' (LGRs), making them subject to the Groceries Market Investigation (Controlled Land) Order 2010. This order currently applies to Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury's, Tesco and Waitrose.
Why the change?
The order, originally made in 2010, excluded Aldi and Lidl as they were considered "limited assortment discounters" (LADs) selling a "significantly more limited range of groceries than the LGRs at a low price." However, the CMA's review found that both retailers have since expanded their operations and now meet the criteria for LGRs based on store footprint, product range, and procurement model.
Specifically, each operates larger grocery stores (over 1,000 square metres) across Great Britain or Northern Ireland, carries a full range of groceries, and purchases directly from suppliers through an integrated wholesaling function. The UK food and grocery market is estimated to be worth £215 billion, with Aldi and Lidl ranking among the top five retailers by market share.
What the rules mean
The order is designed to stop LGRs from using land agreements, such as restrictive covenants and exclusivity arrangements, to make it harder for rival supermarkets to open nearby. The CMA says this ensures supermarkets compete freely and shoppers have more choice about where to buy and how much to pay.
Juliette Enser, Executive Director of Competition Enforcement and Markets at the CMA, said: "We want everyone to have the best choice of supermarket and range of prices when buying their groceries. To ensure this happens, we put rules in place to prevent big supermarket chains blocking rival stores from opening nearby – and now we propose applying those rules to Aldi and Lidl too."
Next steps
No final decision has been made. The CMA is inviting stakeholders to submit views on the provisional findings by Monday, September 7, 2026 at 5pm. Final decisions are expected in the autumn.
