Multiples that use their buying power to push down prices will be targeted by a plan to encourage competition, it is expected to be revealed today.

The Competition Commission is today expected to recommend changes to prevent chains from developing local monopolies.

An ombudsman will be proposed to supervise the relationship between the big four retailers Tesco, Sainsbury's, Asda, and Morrisons - which have a 75 per cent market share - and their suppliers.

The recommendations follow a two-year inquiry into the £1.23 billion grocery sector.

The commission is expected to set out a test in which local authorities would take into account whether one supermarket is dominating an area before agreeing to a second store for that chain.

Provisional findings in October revealed 200 areas of the country where consumers had little choice of where to shop, and revealed that chains were buying up land to stop rivals building competing stores.

"A lack of competition in certain local markets not only disadvantages consumers in those areas, but also allows retailers to weaken their offer to consumers nationally," said the commission.

This investigation was the third into competition in the sector. The last market-wide inquiry was eight years ago.

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