The Competition Commission (CC) is expected to unveil new planning restrictions to prevent one supermarket chain dominating any particular area, when it publishes the culmination of its two-year inquiry into the UK grocery market on Thursday.

Retailers also fear the creation of an independent regulator to police supermarket-supplier relationships will be recommended by the CC during the statement.

Peter Freeman, chairman of the CC, is keen to crack down on dominance from any one supermarket - as witnessed in so-called Tesco towns - according to The Observer. He is expected to set out the details of a new competition test, where planners consider the number of rivals in one area instead of granting planning permission to the highest bidder. In October, the commission identified around 200 areas with particularly poor consumer choice, and found that of 520 landbank sites owned by supermarkets, more than a fifth were being used to specifically hold back competition.

In its submission to the Competition Commission, Asda asked the CC to give powers to local authorities to suspend or vary key planning rules in areas where Tesco is deemed to have ‘too many stores’, the Sunday Telegraph said.

Freeman is also expected to outline the details of a new ombudsman to supervise the relationships of the big four supermarkets with their suppliers, following accusations that suppliers are being squeezed by retail price cuts.

The commission is due to recommend changes to the current Supermarkets Code of Practice as well, created following the last CC enquiry. Suppliers have little confidence in the current complaints system, the CC is expected to say.

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