Commission acts to stop supermarket bullying

The Competition Commission's final report on supermarkets has confirmed that the big retailers have been treating farmers and suppliers unfairly.

It is great news that the Commission has proposed a set of remedies aimed at stopping their bully boy tactics - these have finally come after years of campaigning by Friends of the Earth.

They will toughen up the Supermarket Code of Practice - which aims to stamp out unfair practices. They have also called for a new watchdog to police the code.

But its bad news for high streets

Not all the news is good - the Commission has missed the opportunity to promote vibrant town centres and protect independent shops.

They failed to acknowledge the vital role that small shops play in our communities. Under their proposals the Tesco takeover will roll on.

Local shops are closing at an alarming rate -
but the Competition Commission has failed to act

What happens next?

It is vital that the Commission now imposes a strong code of practice - it must be tough enough to stop the unfair treatment of suppliers for good.

But when the supermarkets were found guilty of unfair practices in 2000 they used their influence to create a weak code. They must not be allowed to do the same again.

Government must make the new watchdog independent - and give it teeth. It needs the power to carry out its own investigations and take firm action if and when the supermarkets breach the code.

Government must also introduce new planning policy for town centres which positively supports diverse retailing. The Commission's failure to act does not stop them from doing so.