Aldi and Lidl will now be subject to the same competition rules as other major UK supermarkets.
The Competition and Markets Authority (CMA) announced that both discount chains will be classified as “large grocery retailers,” bringing them in line with competitors like Tesco, Sainsbury’s, Asda, and Morrisons.
The rules, which have been in place for those supermarkets since 2010, are designed to prevent large chains from using land agreements to block rivals from opening nearby stores.
Juliette Enser, executive director for competition enforcement and markets at the CMA, said: “We put in place rules to stop big supermarket chains from blocking rival stores opening in their area, and now those rules apply to Aldi and Lidl.
“This will help level the playing field and make sure shoppers get the best choice of products and prices in their area.”
The CMA said the move will help “to ensure customers get the best choice of where to shop.”
Aldi currently holds a 10.5 per cent share of the UK grocery market, making it the country’s fourth-largest supermarket.
Lidl follows closely as the fifth-largest, with an 8.6 per cent share.
Aldi said the change would not affect its plans for growth.
A spokeswoman for the supermarket said: “The CMA’s decision does not change our commitment to invest in the UK and work towards our long-term ambition of 1,500 stores, bringing high-quality, affordable food to more communities, while ensuring that we comply with any relevant obligations under the Controlled Land Order.
“We will invest a record £900 million next year in 40 new stores and continued improvements to our distribution network.”
Lidl also welcomed the CMA’s decision.
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A spokesman for the retailer said: “As a discounter, we have always welcomed and embraced competition within the market and our focus remains on continuing to open new stores and bringing our high-quality, lowest-priced groceries to even more communities.
“The CMA’s decision regarding our status under the Controlled Land Order will not impact our steadfast momentum and growth.”
Recent data from Worldpanel by Numerator confirms their positions as the fourth and fifth-largest supermarket chains in the UK.
