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Grocery supplier accuses Lidl of using monopsony power to destroy their business

Geoff Riley

21st December 2022

A Grocery supplier, Proctor & Associates, is taking Lidl to court, alleging that the latter has systemically destroyed its business, using its monopsony power to poach its suppliers, or using third party agents to approach them, cutting them out of the loop.

Many of the practices breach the Groceries Supplies Code of Practice regulated by the Groceries Code Adjudicator (GCA) but Proctor & Associates have brought a private case rather than wait for the regulator, because the former allows them to sue for damages.

The supermarket has, unsurprisingly, declined to comment.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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