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February 15, 2008

Regulate this: Britain's supermarket czar

American merchants like to complain about regulation, but they haven't seen anything like this. Yesterday the U.K. Competition Commission recommended the creation of a new regulator to police supermarkets and their relations with suppliers, concentration of stores, land monopolies and so forth. Perhaps one reason this is necessary is British land-use laws, which are more restrictive than American ones and hinder competitors from moving into the territory. From The Guardian:

A dedicated ombudsman with tough new powers to protect farmers and suppliers from exploitation by supermarkets has been proposed by the Competition Commission.

After a two-year inquiry into the £123bn grocery market, the watchdog wants an ombudsman to police contracts between grocers and their suppliers. The new body will have the power to "proactively investigate" breaches of a new code of practice which will govern how supermarkets do business with their suppliers.

Supermarkets may also have to appoint in-house compliance officers to ensure they comply with the code.

Posted by Jay Hancock at 5:49 PM | | Comments (0)
        

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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