The Competition and Markets Authority (CMA) has provisionally proposed extending its supermarket land agreement rules to Aldi and Lidl, arguing that the discounters should now be treated in the same way as the UK's largest grocery retailers.

If the proposal is approved, it would prevent Aldi Stores, Lidl Great Britain, and Lidl Northern Ireland from using restrictive land agreements that could block rival supermarkets from opening nearby.

The Groceries Market Investigation (Controlled Land) Order 2010 currently applies to Asda, Co-op, Marks & Spencer, Morrisons, Sainsbury's, Tesco and Waitrose. It is designed to stop major supermarket chains using restrictive covenants and exclusivity arrangements to limit competition, helping ensure shoppers have greater choice and prices remain competitive.

When the Order was introduced, Aldi and Lidl were excluded because they were classified as limited assortment discounters. However, following a review, the CMA has provisionally concluded that both retailers now meet the criteria to be designated as Large Grocery Retailers.

The regulator said the decision reflects the scale and geographic reach of Aldi's and Lidl's store estates, the breadth of their grocery ranges, and their procurement models, under which they purchase products directly from suppliers through integrated wholesale operations.

The CMA noted that the UK grocery market is worth an estimated £215 billion, with Aldi and Lidl now ranking among the country's five largest supermarket operators by market share.

Juliette Enser, executive director of competition enforcement and markets at the CMA, said the move is about allowing shoppers to choose where they spend their money and levelling the playing field for all major supermarkets.

"We want everyone to have the best choice of supermarket and range of prices when buying their groceries,” she added. “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.

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