PPA to lobby Competition Commission on supermarkets

by Jennifer Whitehead, Media Week 09-Jun-06, 12:30

The PPA is to lobby the Competition Commission to investigate the dominant position that supermarkets have in magazine sales.

In May, the Office of Fair Trading asked the Competition Commission to investigate the UK grocery sector over concerns that the supermarkets’ land holdings and purchasing power held back competition.

The PPA acknowledged that the present investigation only includes groceries, and would therefore exclude consideration of the impact of supermarkets on newsagents or the choice of magazines and newspapers available to consumers.

However, it said it is possible the terms of reference could be widened to include non-food items.
The move is the latest tactic in the PPA’s challenge to the OFT’s plans to overhaul news and magazine distribution.

The association has argued that breaking up wholesale monopolies could lead to supermarkets unduly influencing newspaper and magazine content by putting pressure on them at newsstands.

The OFT is inviting submissions by 1 September.