On 19 March 2020, the government announced that, as part of a package of measures to allow supermarkets to work together to feed the nation during the 2019 novel coronavirus disease outbreak (COVID-19), elements of competition law will be temporarily relaxed for the food sector.

The Environment Secretary George Eustice confirmed this temporary waiver in a meeting with chief executives from the UK’s leading supermarkets and food industry representatives. This is intended to allow retailers to share data with each other on stock levels, cooperate to keep shops open, or share distribution depots and delivery vans. It would also allow retailers to pool staff with one another to help meet demand.

Legislation will be laid shortly to amend elements of the Competition Act 1998. The government announcement states that "this will be a specific, temporary relaxation to enable retailers to work together for the sole purpose of feeding the nation during these unprecedented circumstances. It will not allow any activity that does not meet this requirement".

Paragraph 7 of Schedule 3 of the Competition Act provides that where the Secretary of State is satisfied that there are exceptional and compelling reasons in the public interest why the Chapter I prohibition ought not to apply to an agreement or any agreement of a particular description they may exclude them from the Chapter I prohibition. Under section 3(3) of the Competition Act, the Secretary of State may add an exclusion from the Chapter I prohibition for agreements that do not in general have an adverse effect on competition.

The CMA has issued a statement welcoming this announcement. The CMA has offered reassurance that, where agreements are not covered by that legal relaxation, "the CMA has no intention of taking competition law enforcement action against cooperation between businesses or rationing of products to the extent that this is necessary to protect consumers – for example, by ensuring security of supplies".

However, the CMA states that it will not tolerate unscrupulous businesses exploiting the crisis as a "cover" for non-essential collusion (for example, exchanging information on longer-term pricing or business strategies, where this is not necessary to meet the needs of the current situation). The CMA will issue more guidance on this in due course.

While hoping that this will reassure businesses who are doing their best to meet the needs of the public, the CMA warns that any assurance that it gives cannot protect against competition litigation by private parties.