More Australian supermarket majors have agreed to end restrictive lease agreements that limit competition in local markets, the country’s competition regulator said today (8 February).

Aldi, Franklins, Spar Australia, Foodworks and Metcash have all agreed not to enter into any new leasing agreement that include restrictive provisions.

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In the case of existing leases, the groups have also agreed not to enforce any restrictive provisions beyond five years after the start of trading, the Australian Competition and Consumer Commission (ACCC) said.

The news follows a similar agreement reached last September with Australia’s two largest supermarkets, Woolworths Ltd and Coles.

The two companies said that the deal will help to ensure greater competition in the country, as agreements between shopping centre landlords and grocers will not be impacted by restrictive provisions.

“These further agreements with the next tier of supermarket operators mean that many more shopping centres will no longer be hamstrung by restrictive provisions in leases that prevent or hinder the entry of competing supermarkets,” ACCC chairman Graeme Samuel said.

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“These supermarkets, to their credit, have all acknowledged the concerns of the ACCC in respect to restrictive provisions and have acted responsibly in cooperating with the ACCC to phase out restrictive provisions.”

As with the deals reached with Coles and Woolworths, the fresh agreements are in the form of court enforceable undertakings that have been voluntarily provided.