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Tesco prepares probe fightback Tesco prepares probe fightback
(about 4 hours later)
Tesco is set to defend its position in the UK grocery market, by denying that it has too much of a stranglehold over consumer choice.Tesco is set to defend its position in the UK grocery market, by denying that it has too much of a stranglehold over consumer choice.
An ongoing Competition Commission probe is focusing on local competition.An ongoing Competition Commission probe is focusing on local competition.
However in a submission to the industry watchdog, it is expected to criticise the way that "local" has been defined.However in a submission to the industry watchdog, it is expected to criticise the way that "local" has been defined.
Tesco confirmed reports its argument would include findings customers spend up to 30 minutes driving to the supermarket of their choice. Tesco confirmed reports its argument would include findings that customers spend up to 30 minutes driving to the supermarket of their choice.
This compares to the 10 to 15 minute drive criteria used by the commission.This compares to the 10 to 15 minute drive criteria used by the commission.
'Fiercely competitive''Fiercely competitive'
Tesco drew the conclusion from a research tool which it says can identify the habits of marginal shoppers.Tesco drew the conclusion from a research tool which it says can identify the habits of marginal shoppers.
As well as finding customers see trips up of up to half an hour as "local", it also said it showed that even small price rises could cause shoppers to switch stores.As well as finding customers see trips up of up to half an hour as "local", it also said it showed that even small price rises could cause shoppers to switch stores.
This suggested the market was already "fiercely competitive", the submission will say.This suggested the market was already "fiercely competitive", the submission will say.
Tesco's director of corporate and legal affairs, Lucy Neville-Rolfe told the Sunday Telegraph it was hopeful the results would have an impact with the watchdog.Tesco's director of corporate and legal affairs, Lucy Neville-Rolfe told the Sunday Telegraph it was hopeful the results would have an impact with the watchdog.
"We have submitted a serious economic proposition. We hope that the evidence we have submitted will force the commission to review its definition," she said."We have submitted a serious economic proposition. We hope that the evidence we have submitted will force the commission to review its definition," she said.
The commission is probing whether Tesco, Sainsbury's, Asda and Morrisons - which control almost 75% of the UK market are abusing their position by limiting consumer choice.The commission is probing whether Tesco, Sainsbury's, Asda and Morrisons - which control almost 75% of the UK market are abusing their position by limiting consumer choice.
Firms found to have an anti-competitive hold on the market may be forced to sell off stores.Firms found to have an anti-competitive hold on the market may be forced to sell off stores.