Where the words come from
Monopsony as a buyer that faces the market supply curve and must raise the price it pays on all units to buy more, so its marginal cost lies above the supply curve; buying where marginal cost equals demand and paying the price on the supply curve; fewer bought at a lower price than in a competitive market — Principles of Economics 2e, OpenStax, licensed CC BY 4.0. https://openstax.org/books/principles-economics-2e/pages/14-2-wages-and-employment-in-an-imperfectly-competitive-labor-market. Changes: The labour-market argument of 14.2 (sole employer, wage, marginal cost of labour) applied by us to a dominant buyer of goods (price, marginal cost of buying); the transfer of income from suppliers, the gain to the firm and the exit of the least efficient suppliers are our application; British spelling.
Recent high grocery price inflation not appearing to be driven by weak or ineffective competition between retailers; competition between grocery retailers crucial to keeping prices as low as they can be; Aldi and Lidl gaining market share over ten years; retailers whose prices became materially higher than rivals' tending to lose share; consumers in general able and willing to switch — Update on the CMA's work to help contain cost of living pressures in the groceries sector (20 July 2023), Competition and Markets Authority, GOV.UK, Open Government Licence v3.0. https://www.gov.uk/government/publications/update-on-the-cmas-work-to-help-contain-cost-of-living-pressures-in-the-groceries-sector/update-on-the-cmas-work-to-help-contain-cost-of-living-pressures-in-the-groceries-sector. Changes: Paraphrased and condensed; the link from retail competition to whether lower buying costs reach shelf prices is our reasoning.
The Code's provisions on variation of terms of supply, timing of payments, payments for marketing and promotions, and payments as a condition of being a supplier — Statutory Review of the Groceries Code Adjudicator: 2019-2022 (July 2023), Department for Business and Trade, GOV.UK, Open Government Licence v3.0. https://www.gov.uk/government/publications/groceries-code-adjudicator-statutory-review-2019-to-2022 and https://assets.publishing.service.gov.uk/media/64b69f6571749c001389edc5/statutory-review-of-the-groceries-code-adjudicator-2019-2022.pdf. Changes: Paraphrased from Annex B; the concept-card definitions and examples are our wording of the practices the Code governs; the examples are invented.
The Competition Commission's 2008 finding that some large retailers transferred excessive risk and unexpected costs to direct suppliers by using their buyer power, which might harm suppliers' ability to invest and innovate and ultimately reduce choice or raise prices for consumers; the Code applying to the fourteen designated retailers with UK groceries turnover above £1 billion and only to their direct suppliers, excluding most primary producers and farmers; the Code not regulating the prices retailers pay; average perceived compliance of 93% in 2025 against 73% in 2014; fixed-price contracts below production costs, short-notice changes to orders and pressure to cut prices limiting margins and innovation; smaller retailers facing large suppliers with greater bargaining power; the Fair Dealing Obligations (Milk) Regulations 2024 — Statutory Review of the Groceries Code Adjudicator: 2022-2025 (April 2026), Department for Business and Trade, GOV.UK, Open Government Licence v3.0. https://www.gov.uk/government/publications/groceries-code-adjudicator-statutory-review-2022-to-2025 and https://assets.publishing.service.gov.uk/media/69dcc0466b695d635c34dc9e/gca-statutory-review-2022-2025.pdf. Changes: Paraphrased and condensed from paragraphs 76, 112, 114 and 116, footnote 48 and Annex B; consultation responses reported as what the review heard, not as findings; the closing judgement is ours.
The Competition Commission's 2008 groceries market investigation: retailers in many respects delivering a good deal for consumers; a strengthened Groceries Supply Code of Practice requiring notice of and reasons for de-listing suppliers or significantly reducing their business — Groceries market investigation: final report news release (30 April 2008), Competition Commission, GOV.UK, Open Government Licence v3.0. https://www.gov.uk/cma-cases/groceries-market-investigation-cc and https://assets.digital.cabinet-office.gov.uk/media/55194b9c40f0b61404000330/14-08.pdf. Changes: Paraphrased; the delisting card's definition and example are our wording.
Questions, options, diagrams and feedback are our own. Figures credited to a source above are that source's; every other figure is invented to show the method.