Plans for expansion safeguarded by Tesco

Tesco Tesco has appealed against the introduction of a competition test that could halt its expansion plans. The move could delay the introduction of regulations until 2010.

The Competition Commission's final report on the grocery sector recommended a competition test, which aims to stop one retailer having a dominant position in an area by opening larger stores and to safeguard consumer choice.

Tesco's appeal means that the Government may have to wait until 1 October 2009 to implement the regulations, rather than April 2009 as requested by the Commission. The retailer denies that the appeal is a "stalling tactic," and says that the competition test is an unsatisfactory response to the level of problems identified in the report, considering the competitive nature of the market.

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