Asda fined by CMA for failing to comply with fuel price investigation

Asda has been fined £60,000 for failing to attend a Competition Markets Authority (CMA) interview for a report into supermarket fuel prices, published today, and for failing to comply with information requests for the report.

The fines of £30,000 each are the maximum statutory fixed fee for failing to attend the investigation interview without good cause.

Asda, owned by the Issa brothers and private equity firm TDR Capital, acquired the forecourt businesses of EG Group, also owned by the Issa Brothers, in May.

The fine by the CMA is not an indication of non-competitive practices by Asda, but imposed because the CMA found its compliance with information requests “lacking in clarity, consistency and timeliness”.

The GMB union, however, says the Asda/EG merger could threaten food supplies and have a ‘chilling effect’ on fuel prices.

The report found that drivers across the country were paying an extra 6p per litre more than they should as supermarket margins increased between 2019 and this year. That totals to £1bn more.

Margins increased in 2020, and although they contracted in 2021 and 2022, they have not returned to 2019 levels, and are above historical levels.

Nadine Houghton, GMB National Officer, said, “Today’s investigation completely vindicates GMB’s call for a full CMA investigation into the merger between Asda and the EG group.

“This merger will reduce competition further and ultimately workers and consumers will pay the price. The Business Secretary must use her powers to order a full investigation without delay.”

Asda have been approached for comment.