Supermarkets could no longer face obstacles to ending the sale of cut-price alcohol, after it emerged that ministers were considering approving amendments to competition laws.
The changes would allow supermarkets to override existing rules imposed by the Office of Fair Trading preventing them from colluding to raise prices on alcoholic beverages.
Supermarkets would therefore be able to come together to agree to raise prices on alcohol.
At the moment the big supermarket chains price some drinks brands, particularly in the beer and wine categories, as “loss-leaders” – sold below cost in order to attract more customers to their stores.
The proposals follow recent comments by Tesco, which said that it could only enter into discussions over alcohol pricing and promotions if the government took the lead.
The measures are set to be announced as part of a Home Office review of the Licensing Act later this week.
