First GCA investigation may trigger shift in supermarkets' dealings with suppliers

An article by our Antitrust & Competition team has been published in the International Law Office (ILO) competition newsletter.

This article comments on the Groceries Code Adjudicator (GCA) plans to investigate Tesco plc over concerns that it had breached the Groceries Code.

A copy of the article, which was published on 9 April 2015, can be accessed below, provided with the kind permission of the publishers, International Law Office.

First GCA investigation may trigger shift in supermarkets' dealings with suppliers

When this article was published, we reported that legislation had been proposed to give the GCA the power to fine UK supermarkets that had breached the Groceries Supply Code of Practice (GSCOP).  Parliament has now approved that legislation meaning that the GCA can now impose penalties on large supermarkets of up to 1% of their total annual UK turnover (not just turnover of groceries), depending on the seriousness of the breach. These new measures operate alongside existing powers to issue supermarkets with recommendations as to their future conduct, and to “name and shame” those that have breached GSCOP.  The GCA’s new powers will only apply to breaches that occur after 5 April 2015 – thus it will not apply to the current Tesco investigation.