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Two supermarkets in e-mail probe | |
(40 minutes later) | |
Two of the UK's supermarket giants have been ordered to hand over millions of e-mails and letters as part of a Competition Commission investigation. | Two of the UK's supermarket giants have been ordered to hand over millions of e-mails and letters as part of a Competition Commission investigation. |
The Sunday Telegraph says it is looking into claims Tesco and Asda have been pressurising suppliers to cut prices. | The Sunday Telegraph says it is looking into claims Tesco and Asda have been pressurising suppliers to cut prices. |
It is part of larger inquiry launched last year into the sales methods of Tesco, Asda, Sainsbury's and Morrisons. | It is part of larger inquiry launched last year into the sales methods of Tesco, Asda, Sainsbury's and Morrisons. |
The supermarkets deny any wrong-doing and say they follow a strict code of conduct when dealing with suppliers. | The supermarkets deny any wrong-doing and say they follow a strict code of conduct when dealing with suppliers. |
'Thorough investigation' | 'Thorough investigation' |
A spokesman for the Competition Commission confirmed legal notices, called Section 109s, had been served on Tesco and Asda. | A spokesman for the Competition Commission confirmed legal notices, called Section 109s, had been served on Tesco and Asda. |
The notices would allow the watchdog "to investigate more thoroughly", he said. | The notices would allow the watchdog "to investigate more thoroughly", he said. |
He added: "We are being thorough and using our powers where we can." | He added: "We are being thorough and using our powers where we can." |
We are happy to help and we have got absolutely nothing to hide Asda spokeswoman | We are happy to help and we have got absolutely nothing to hide Asda spokeswoman |
But the supermarkets said they had "nothing to hide". | But the supermarkets said they had "nothing to hide". |
A spokeswoman for Asda, which is based in Leeds, said: "We adhere to the code of conduct between suppliers and supermarkets. | |
"During the period which the commission want to see our correspondence there were about 11 million e-mails to suppliers. | "During the period which the commission want to see our correspondence there were about 11 million e-mails to suppliers. |
"But we are happy to help and we have got absolutely nothing to hide." | "But we are happy to help and we have got absolutely nothing to hide." |
Stores 'squeezed out' | Stores 'squeezed out' |
A spokeswoman for Tesco, based in Hertfordshire, also confirmed the commission has issued the supermarket with Section 109 notices. | A spokeswoman for Tesco, based in Hertfordshire, also confirmed the commission has issued the supermarket with Section 109 notices. |
She said: "We have nothing to hide and we are doing what we can to assist the commission with this enormous data request. | She said: "We have nothing to hide and we are doing what we can to assist the commission with this enormous data request. |
"We expect the commission to conclude that at Tesco, relationships with suppliers are professional and act to the ultimate benefit of the customer." | "We expect the commission to conclude that at Tesco, relationships with suppliers are professional and act to the ultimate benefit of the customer." |
The Office of Fair Trading referred the £120bn supermarket sector to the Competition Commission in May last year, amid claims that top supermarkets had become too powerful and smaller stores were being squeezed out. | The Office of Fair Trading referred the £120bn supermarket sector to the Competition Commission in May last year, amid claims that top supermarkets had become too powerful and smaller stores were being squeezed out. |
The watchdog has been examining the supply chain, planning and land banks of the four big UK supermarkets as part of its two-year inquiry into their market dominance. | The watchdog has been examining the supply chain, planning and land banks of the four big UK supermarkets as part of its two-year inquiry into their market dominance. |