Incoming competition chief targets Australia's retail duopoly.

(From Agence France Presse)

The incoming head of Australia's consumer regulator, Graeme Samuel, indicated that he would back a controversial review of "creeping acquisitions" by retail giants Coles Myer and Woolworths.

The proposed investigation of the retailers is seen as a key test for Samuel, who many view as too close to big business to effectively run the Australian Competition and Consumer Commission (ACCC).

Samuel told the Australian Broadcasting Corporation's Inside Business program Sunday there was need for a transparent, rigorous and independent review of the grocery market dominated by Coles Myer and Woolworths.

"I think it would be a very, very valuable review that would give those of us at the competition regulatory area some guidance as to what they really see might be the outcomes in the context of the supermarket and retail grocery market," Samuel said.

Samuel will take over from the very activist Allan Fels as head of the ACCC on July 1 for an initial 12-month term.

Treasurer Peter Costello named Samuel as acting ACCC chief this week after failing to obtain the required support of Australia's states and territories to appoint the former banker as permanent head of the regulator.