AUSTRALIA'S consumer watchdog has raised concerns about reduced competition if Woolworths buys the Black Stallion Hotel's bottle shop at Rocherlea.

There are four bottle shops in the area including the independently-operated Black Stallion drive-through, Mowbray Liquor Stax and the Woolworths-owned Retreat BWS and Mowbray BWS.

Yesterday the Australian Competition and Consumer Commission said that it was concerned that three Woolworths-owned bottle shops might scare off potential competitors.

While there are 10 liquor stores in the Launceston CBD the ACCC said that consumers were unlikely to travel there to buy grog if they lived at Rocherlea.

Woolworths is the owner, or joint owner, of more than 1100 retail liquor stores throughout Australia.

The other big player in Australia's bottle shop market Wesfarmers, owner of Coles, does not have any liquor stores in Tasmania.

The ACCC is accepting submissions until February 23 and is expected to make a decision on the proposed purchase by March 8.

The purchase does not include the Black Stallion Hotel.