Boost for Tesco as test is rejected.

TESCO secured victory yesterday in its battle against plans to introduce a "competition test" to curb supermarkets' dominance of the grocery sector.

The test was unveiled by the Competition Commission last year as part of a planning shake-up designed to boost competition in the multi-billion pound grocery market.

But the Competition Appeal Tribunal (Cat) agreed with Tesco that the Commission did not fully take account of the fact that the test, relating to planning decisions for larger stores, might have "adverse effects for consumers", among other matters.

Tesco welcomed the decision as a "victory for common sense".

But Cat's decision was met with dismay from the Association of Convenience Stores (ACS), which represents 33,000 local shops. It argued the ruling would slow down the introduction of an effective town centre planning policy.