The Competition and Markets Authority (CMA) has designated Aldi, Lidl GB and Lidl NI as "large grocery retailers" under industry rules that have applied to Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury's, Tesco and Waitrose since 2010.
The rules were introduced to stop large grocery chains from using land contracts to make it harder for rivals to open nearby, particularly through restrictive covenants and exclusivity arrangements.
What the CMA decision means
On Thursday, the CMA said including the German discounters in the same land agreement rules will help "to ensure customers get the best choice of where to shop". The move comes two months after the CMA first suggested the discount chains should come under the same rules as their rivals.
Aldi is currently the UK's fourth largest supermarket chain, with a 10.5% share of the grocery market, while Lidl is the fifth largest with an 8.6% share, according to recent data from Worldpanel by Numerator.
Retailers respond
Both Aldi and Lidl stressed the move will not affect their continued store expansion programmes across the UK.
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. This will help level the playing field and make sure shoppers get the best choice of products and prices in their area."
An Aldi spokeswoman said: "The CMA's decision does not change our commitment to invest in the UK and work towards our long-term ambition of 1,500 stores, bringing high-quality, affordable food to more communities, while ensuring that we comply with any relevant obligations under the Controlled Land Order. We will invest a record £900m next year in 40 new stores and continued improvements to our distribution network."
A Lidl spokesman said: "As a discounter, we have always welcomed and embraced competition within the market and our focus remains on continuing to open new stores and bringing our high-quality, lowest-priced groceries to even more communities. The CMA's decision regarding our status under the Controlled Land Order will not impact our steadfast momentum and growth."
