// The Competition and Markets Authority (CMA) launches a competition probe into the grocery sector
// The investigation looks at whether failures in competition are contributing to rocketing food prices
The Competition and Markets Authority has launched an investigation into competition in the grocery sector following allegations that supermarkets were profiteering from the cost-of-living crisis.
The watchdog said the investigation will look “whether any failure in competition is contributing to grocery prices being higher they would be in a well-functioning market”.
The CMA added that while it had not seen evidence pointing to specific competition concerns “at this stage”, the investigation was “important to be sure that weak competition [was] not adding to the problems”.
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The investigation will evaluate how competition is working across the grocery retail market and identify which product categories “might merit closer examination across the supply chain”.
CMA chief executive Sarah Cardell said: “We recognise that global factors are behind many of the grocery price increases, and we have seen no evidence at this stage of specific competition problems.
“But, given ongoing concerns about high prices, we are stepping up our work in the grocery sector to help ensure competition is working well and people can exercise choice with confidence.”
Prime minister Rishi Sunak is set to meet supermarket bosses and farming leaders on Tuesday as part of an emergency food summit, with talks likely to be centered around concerns over inflation.
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