Tesco’s battle to overturn plans to introduce a “competition test” for supermarkets turned into a victory for the UK’s number-one retailer today.

The Competition Commission had proposed the introduction of the test as part of its investigation into the UK’s grocery market.

The test aimed to prevent supermarkets with a large share in a local market by withholding planning permissions, to help smaller stores open up instead.

But Tesco took the proposals to the Competition Appeal Tribunal, which agreed with the supermarket that the test might have “adverse effects for consumers”.

Tesco has hailed the move as a “victory for common sense”, with executive director Lucy Neville-Rolfe saying: “It would be particularly perverse to introduce a test that would block investment in the current economic climate.”

Tesco claimed the test would have stopped almost a quarter of existing large grocery stores from extending.

But the Association of Convenience Stores (ACS) was dismayed by the decision. ACS chief executive James Lowman said: “We need a clear robust retail planning policy that resists harmful out-of-town development and gives power to local people to build vital and vibrant centres for their community.

“The government has been looking at this issue for over three years and while there remains confusion, planning authorities are weaker and less effective.”

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