Britain's big four supermarkets will be allowed to continue selling alcohol at rock-bottom prices despite complaints that they are driving pubs, corner shops and off-licences out of business.
The Competition Commission has rejected calls for it to stop chains such as Tesco and Asda from offering beer, wine and other drinks at well below their true cost in an attempt to woo customers.
A 16-month inquiry into the groceries market, led by commission chairman Peter Freeman, will rule out a ban when it publishes a report into claims that supermarkets' pricing decisions are putting smaller shops out of business.
That will be a setback for the Association of Convenience Stores, which represents 33,000 shops in England and Wales, including family firms and chains such as Spar, Londis and Costcutter. It claims that 3,000 small shops have closed since 2000 amid growing competition from supermarkets. Observer
See also previous post Supermarket beer pricing is killing pubs for background and further information.
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