According to NEF policy director Andrew Simms, it was clear during discussions that the OFT’s stance had become paradoxical.
He explained: “While officials said they weren’t convinced that a full market review was needed, they also said that a market cap on the big supermarkets was technically possible, acknowledging that a market share of 8% or over was enough for supermarkets to abuse their power. And we are already way past that point.” The OFT also indicated that a precedent for structural remedies existed, citing the growth of independent brewers following changes to the brewing trade.
Officials also said they would be willing to be more “proactive” toward suppliers.
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