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Tesco has been issued a warning by the competition watchdog after unlawfully blocking other supermarkets from opening shops near its stores.

The supermarket leaned on landlords to prevent them renting to rivals in 23 locations, according to the competition and markets authority (CMA).

The watchdog says Tesco"may have reduced competition" and left shoppers worse off by its actions.

After the initial discovery by the CMA, Tesco reviewed all of its land agreements and said it has now agreed to improve its internal processes and staff training to avoid future breaches.

The supermarket also said it would ensure that all new land agreements are in line with the order.

'It's unacceptable that Tesco had these unlawful restrictions'

Andrea Gomes da Silva, the CMA's executive director of markets and mergers, said: "It's unacceptable that Tesco had these unlawful restrictions in place for up to a decade.

"By making it harder for other supermarkets to open stores next to its branches, shoppers could have lost out.

"In the future, we want the ability to fine businesses if we find that they are in breach of our orders. That's why we've called on the Government for more powers."