The Competition and Markets Authority has provisionally decided that Aldi, Lidl Great Britain and Lidl Northern Ireland should face the same supermarket land restrictions as seven of the UK’s established major grocery retailers.
Published on 7 August 2026, the decision could restrict how Aldi and Lidl use property agreements that make it harder for competing supermarkets to open nearby.
The CMA is consulting before reaching final decisions, with responses due by 5pm on 7 September 2026 and final decisions currently scheduled for October 2026.
Despite searches for Aldi Lidl CMA planning rules, this is not a change to the ordinary planning permission system. The proposal concerns competition rules governing supermarket land agreements under the Groceries Market Investigation (Controlled Land) Order 2010.
What Has the CMA Proposed for Aldi and Lidl?
The CMA has provisionally decided to designate Aldi Stores Limited, Lidl Great Britain Limited and Lidl Northern Ireland Limited as “Large Grocery Retailers” under the 2010 Controlled Land Order.
If those decisions are confirmed, they would join:
- Asda
- Co-op
- Marks & Spencer
- Morrisons
- Sainsbury’s
- Tesco
- Waitrose
Those seven retailers are already subject to the Order.
The CMA’s provisional announcement says the objective is to prevent major supermarket businesses using certain land agreements to make it harder for competitors to establish nearby stores.
Crucially, the decision is provisional. Aldi and Lidl have not yet been finally designated under this process.
Are These Really New Planning Rules for Aldi and Lidl?
Not in the conventional sense.
Planning permission determines whether development or a particular use of land is permitted through the planning system. The Controlled Land Order instead addresses contractual restrictions and control over land that could affect grocery competition.
A supermarket could, for example, have an interest in preventing a site it sells from subsequently being used by a competing grocery retailer.
Alternatively, a supermarket occupying part of a retail development could have an exclusivity arrangement limiting the landlord’s ability to let another unit to a competing supermarket.
The CMA’s rules are aimed at those types of arrangements.
Designation would therefore not automatically give competitors planning permission, guarantee that a new supermarket is built or override normal development controls.
It could, however, remove or restrict an additional contractual barrier that may otherwise prevent a competitor from securing a suitable site.
What Do the CMA Supermarket Land Rules Actually Restrict?
Two concepts are particularly important: restrictive covenants and exclusivity arrangements.
A restrictive covenant can limit how land may be used after it has been sold. In the grocery market, a restriction could potentially prevent that land from being used for supermarket retailing.
An exclusivity arrangement can arise where a landlord or developer agrees that another grocery retailer will not be allowed to operate from the same site or development.
The Order generally prevents designated large grocery retailers from imposing new restrictive covenants that restrict grocery retailing, subject to specified exceptions.
It also restricts grocery exclusivity arrangements lasting for more than five years. Existing restrictions can involve more detailed rules and, in some circumstances, a competition test.
The CMA’s guidance for businesses reviewing grocery land agreements explains the compliance principles and recommends obtaining legal advice where an agreement may fall within the Order.
The rules originate from the Competition Commission’s investigation into the grocery sector. That investigation concluded that control of land in highly concentrated local markets could create barriers to entry and weaken competition.
Why Were Aldi and Lidl Excluded When the Rules Began?
The distinction made sense very differently in 2010.
When the Order was introduced, Aldi and Lidl were classified as Limited Assortment Discounters, or LADs. The classification reflected their smaller product ranges and low-price business models.
The Competition Commission’s earlier analysis found that Aldi and Lidl typically carried considerably fewer product lines than traditional large supermarkets and did not regard them as sufficiently close substitutes for those retailers at the time.
Sixteen years later, the CMA believes the grocery market has changed enough to reconsider that treatment.
Why Does the CMA Now Believe Aldi and Lidl Qualify as Major Grocery Retailers?
The CMA’s provisional assessment centres on three requirements.
First is store scale and geographic reach. The regulator says Aldi and Lidl GB each operate more than 1,000 stores across Great Britain, with a large majority exceeding the relevant 1,000-square-metre threshold.
Lidl NI operates more than 40 Northern Ireland stores, again with a large majority exceeding the threshold.
Second is product range. The CMA provisionally believes all three businesses now carry goods across all the principal grocery categories needed to constitute a full range.
It acknowledges that Aldi and Lidl continue to offer less choice within some categories, particularly in branded and specialist products, but considers this a difference in the depth of the range rather than the absence of major grocery categories.
Third is procurement. The regulator says each business has an integrated grocery wholesaling function purchasing directly from suppliers.
The CMA has also considered whether consumers use the discounters for their main weekly shop and whether established supermarkets treat them as meaningful competitors.
Its provisional report concludes that Aldi, Lidl GB and Lidl NI now exert a material competitive constraint on existing large grocery retailers.
Aldi Disputes the CMA’s Interpretation of Its Supermarket Model
Aldi argued against designation during the CMA’s earlier consultation.
In its April submission, Aldi maintained that it remained a Limited Assortment Discounter and said its core range contained 2,005 products, rising to approximately 2,703 grocery SKUs when certain additional ranges were included.
It argued that traditional large grocery retailers typically had substantially larger ranges and said its lower assortment remained fundamental to its low-cost operating model. Aldi also maintained that its exclusion from the Order had not harmed consumers or competition.
The CMA has provisionally rejected the argument that SKU numbers should decide the issue on their own.
Its assessment focuses instead on whether the discounters cover the essential grocery categories, can serve a substantial number of customers making a main shop and compete materially with supermarkets already covered by the rules.
What Have Rival Supermarkets Said?
Several competitors supported bringing Aldi and Lidl within the Order during the CMA’s first consultation.
Sainsbury’s argued that allowing the discounters to remain outside the rules while comparable or smaller supermarkets were covered created an asymmetric competitive position. It said Aldi and Lidl had developed the scale, range and geographic presence required for designation.
Morrisons similarly argued that Aldi and Lidl now provide broad grocery ranges capable of supporting a customer’s full weekly shop. It said extending the Controlled Land Order was necessary to create what it regarded as a level playing field.
Iceland also supported designation, arguing that both businesses had grown substantially since 2010 and should be subject to the same restrictions on conduct that could limit the availability of grocery sites.
These are submissions from competing retailers with commercial interests in the outcome, rather than independent findings. The CMA has considered them alongside evidence obtained directly from Aldi, Lidl and the seven existing Large Grocery Retailers.
Does the CMA Have Evidence That Aldi and Lidl Use Restricted Land Agreements?
The provisional CMA report contains an important finding.
Evidence supplied to the regulator in 2025 showed that a proportion of the land agreements of Aldi, Lidl GB and Lidl NI contained types of restrictions that would fall within the Order if they were designated.
However, commercially sensitive details in the public report have been redacted. The published evidence does not provide a complete public figure showing how many agreements would ultimately require action.
It would therefore be inaccurate to suggest that every Aldi or Lidl property agreement contains an anti-competitive restriction, or that the CMA has made a final finding that particular agreements breached rules that did not previously apply to those retailers.
Could the Changes Make It Easier for Rival Supermarkets to Open?
Potentially, but the effect should not be overstated.
If Aldi and Lidl are finally designated, certain land restrictions that could prevent rival grocery businesses accessing sites would become subject to the same regime already applying to major supermarkets such as Tesco, Sainsbury’s and Morrisons.
That could improve access to some potential supermarket locations and reduce one possible barrier to local competition.
It does not mean a rival supermarket will automatically open next door to an Aldi or Lidl. Suitable sites, commercial viability, leases, development costs, planning approval and individual expansion strategies would still matter.
The CMA’s objective is therefore better described as removing a potential competitive barrier, rather than directly creating new supermarket stores.
What Could the Decision Mean for Shoppers?
The intended consumer benefit is greater local competition.
Where several supermarkets have a realistic opportunity to compete for customers in an area, businesses have stronger incentives to compete on price, quality, range and service. The CMA says the purpose of the Order is ultimately to preserve consumer choice.
However, there is no guarantee that designation will lead to a particular new store opening or an immediate fall in grocery prices.
Competition between supermarkets is already intense. Aldi’s continuing emphasis on low prices can also be seen in its recent UK price reductions across more than 100 products, while several established chains run price-matching programmes against the discounters.
The land decision affects one part of that wider competitive environment.
Will the CMA Proposal Stop Aldi or Lidl Expanding?
Both businesses say it will not.
Following the provisional announcement, Aldi said the proposal would not affect its long-term UK expansion plans and reiterated its intention to open hundreds of additional stores. Lidl likewise said the outcome would not affect its growth momentum.
Lidl has separately published a substantial list of locations where it wants to find new sites, illustrating the scale of its ongoing expansion programme.
Designation would therefore alter the rules governing certain property arrangements rather than prohibit Aldi or Lidl from acquiring sites or opening stores.
What Happens if a Supermarket Breaches the Controlled Land Order?
The CMA monitors compliance and has previously required supermarkets to address land agreements that breached the Order.
There is an unusual enforcement point, however.
Although the Digital Markets, Competition and Consumers Act 2024 expanded the CMA’s ability to impose financial penalties for breaches of newer market remedies, the CMA has said those enhanced fining powers do not apply to this particular Order because it dates from 2010.
That does not make the Order optional. The CMA continues to monitor the remedy and has publicly recorded previous breaches involving designated supermarket businesses.
What Happens Next With the Aldi and Lidl Cma Decision?
The process is still open.
Interested parties have until 5pm on Monday 7 September 2026 to respond to the provisional decisions. The CMA will consider those submissions and any further evidence before deciding whether its conclusions should change.
Its current Aldi and Lidl Controlled Land Order case timetable schedules final decisions for October 2026.
Until those decisions are published, reports that Aldi and Lidl have already been permanently brought within the land rules would be premature.
The key issue is whether the CMA confirms that the discounters have evolved from the limited-assortment businesses recognised in 2010 into Large Grocery Retailers that should now face the same controlled-land restrictions as other major supermarket chains.
Conclusion
The CMA’s proposed decision to bring Aldi and Lidl under the Controlled Land Order could mark an important change in how supermarket property agreements are regulated in the UK.
Although often described as new planning rules, the measures focus specifically on restrictive covenants and exclusivity arrangements that may limit local grocery competition.
If confirmed, Aldi and Lidl would face the same land restrictions as other major supermarket groups. The final outcome will depend on the CMA’s consultation, with decisions expected in October 2026 after submissions are reviewed.
FAQs
Are Aldi and Lidl subject to new planning rules?
Not exactly. The CMA proposal concerns competition rules affecting supermarket land agreements rather than the ordinary planning permission system.
What is the Controlled Land Order 2010?
The Controlled Land Order restricts certain land agreements used by major grocery retailers that could prevent competing supermarkets from opening nearby. It covers arrangements such as restrictive covenants and some long-term exclusivity agreements.
Why is the CMA targeting Aldi and Lidl now?
The CMA provisionally believes Aldi and Lidl have grown sufficiently in store numbers, geographic reach and grocery range to qualify as Large Grocery Retailers. They were previously treated differently because of their limited-assortment discount business models.
Have Aldi and Lidl already been added to the rules?
No, the CMA’s decisions published in August 2026 are provisional. Final decisions are expected after the consultation process concludes.
When does the CMA consultation close?
The consultation on the provisional decisions is scheduled to close at 5pm on 7 September 2026. The CMA currently expects to publish final decisions in October 2026.
Could the changes lead to more supermarkets opening?
Potentially, because restricting certain land agreements could remove barriers that prevent rival grocery retailers from accessing suitable sites. However, new store openings would still depend on planning permission, commercial viability, property availability and individual retailer strategies.
Which supermarkets are already covered by the Controlled Land Order?
Asda, Co-op, Marks & Spencer, Morrisons, Sainsbury’s, Tesco and Waitrose are already subject to the Order. Aldi and Lidl would join them if the CMA confirms its provisional decisions.
What are restrictive covenants in supermarket property agreements?
A restrictive covenant can limit how land may be used after it is sold. In the grocery sector, such restrictions can sometimes prevent a competing supermarket from operating from that site.
What are supermarket exclusivity arrangements?
An exclusivity arrangement can prevent a landlord or developer from allowing another grocery retailer to operate within the same development. The Controlled Land Order places limits on certain long-term exclusivity arrangements involving designated retailers.
Will the CMA decision stop Aldi or Lidl opening new stores?
No, designation would not prevent either retailer from acquiring sites or continuing its expansion plans. It would instead affect how certain land agreements can be structured where they could restrict grocery competition.