CMA Proposes Applying Restrictive Land Rules to Aldi and Lidl

The Competition and Markets Authority issued a provisional ruling to designate Aldi and Lidl as large grocery retailers, a move that would subject the discount chains to the same restrictive land rules as major UK supermarkets like Tesco and Sainsbury's. Under the Groceries Market Investigation (Controlled Land) Order 2010, large retailers are prohibited from using exclusivity terms or restrictive covenants in land agreements to block competitors from opening nearby stores.

The regulator determined that Aldi and Lidl no longer qualify as limited assortment discounters because of their nationwide presence, expansive store footprints, and full grocery ranges. While Aldi argued against the reclassification by citing its lack of home delivery and online sales, the regulator maintained that the chains' store sizes and procurement models justify the change.

Juliette Enser, Executive Director of Competition Enforcement and Markets at the CMA, stated the proposal is about "levelling the playing field for all major supermarkets" and ensuring shoppers have the best choice of prices. The CMA is accepting stakeholder feedback until September 7, 2026, with a final decision expected in October.