Coles has accused the competition regulator of overstating its profit margins in the findings of a year-long investigation into the grocery sector, with the country’s two supermarket giants warning that any more regulation brought in after the review could lead to higher prices.

The Australian Competition and Consumer Commission’s report, released on Friday, found Woolworths and Coles were some of the most profitable supermarket retailers in the world and concluded that their margins had increased since the pandemic. However, it found no clear evidence of price gouging and conceded their dominance was not likely to end.