In May 2022, the Commission opened an investigation into the acquisition of land and the lodging of land and lease covenants by Foodstuffs North Island. The Commission has now filed proceedings against Foodstuffs North Island, alleging that these anti-competitive land covenants were lodged by the supermarket operator with the purpose of blocking competitors from opening rival supermarkets at particular sites and developing existing ones at several locations across the lower North Island.
PartiesFoodstuffs North Island Limited
Category
Anti-competitive conduct
Sub-category
Act/Section
Commerce Act ss 27, 28, 47
Industry
Retail - food
StatusOpen
Outcome
Case decision number
Date opened31 May 2022
18 Jun 2024
COMPLETED
Proceedings issued against Foodstuffs North Island Limited
The Commission has completed an investigation into the acquisition of land and the lodging of land and lease covenants by Foodstuffs South Island. The Commission has closed the investigation with no further action. In making this decision, the Commission had regard to the strength of the evidence and the nature and extent of Foodstuffs South Island’s alleged conduct. The Commission also had regard to whether further proceedings would achieve additional general or specific deterrence in light of enforcement action against Foodstuffs North Island, and the introduction of section 28A of the Act which renders Foodstuffs South Island’s existing grocery covenants unenforceable and prohibits future grocery covenants.
The Commission has completed an investigation into the acquisition of land and the lodging of land and lease covenants by Woolworths New Zealand. The Commission has closed the investigation with no further action. In making this decision, the Commission had regard to the strength of the evidence and the nature and extent of Woolworths New Zealand’s alleged conduct. The Commission also had regard to whether further proceedings would achieve additional general or specific deterrence in light of enforcement action against Foodstuffs North Island, and the introduction of section 28A of the Act which renders Woolworths New Zealand’s existing grocery covenants unenforceable and prohibits future grocery covenants.