The Competition and Markets Authority (CMA) has confirmed that discount retailers Aldi and Lidl will be subject to the same land agreement rules as the UK's largest supermarket chains, a move designed to improve shopper choice.
The decision, announced on Thursday, October 22, follows a provisional proposal from August 2026 that aimed to prevent the German brands from blocking rival supermarkets from opening close to their stores.
Rules Extended to Discount Retailers
The land agreement rules, introduced in 2010, are designed to stop large grocery retailers from using land agreements to make it harder for rival supermarkets to open nearby. They currently apply to seven retailers: Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury's, Tesco and Waitrose.
In its provisional decision in August, the CMA said it believes Aldi, Lidl GB and Lidl NI should also be subject to the rules. Aldi is the UK's fourth largest grocer, with a 10.8% share of the market, and Lidl is the sixth largest with an 8.8% share, according to recent figures from Worldpanel.
Expansion Drives Regulatory Change
Both companies have rapidly expanded through store openings in recent years, while also attracting new shoppers through their discount pricing. The regulator said the brands were not originally included in the rules due to their more limited range of products, but due to expanding their shops and opening larger stores, they should now be covered by the restrictions.
Juliette Enser, Executive Director for Competition Enforcement and Markets at the CMA, 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."
Enser added: "This will help level the playing field and make sure shoppers get the best choice of products and prices in their area."
