Coles Group Ltd (ASX:COL) shares are soaring 5.01% in Friday's trading session, following the release of the Australian Competition and Consumer Commission's (ACCC) long-awaited report on the supermarket sector. The report, while identifying Coles and Woolworths as some of the most profitable supermarket businesses globally, has been largely viewed as 'benign' by market analysts.

The ACCC's findings, which include 20 recommendations to improve transparency and competition in the sector, have not called for aggressive reforms such as price controls or forced divestitures. Instead, the regulator has suggested measures like publishing all prices online and improving supplier relations. Citi analysts noted that while the report may generate negative publicity in the near term, they "do not expect a material impact to supermarket earnings from the recommendations."

Investor sentiment appears buoyed by the perception that the ACCC's recommendations pose limited threats to Coles' business model and profitability. The company has welcomed recommendations that improve transparency for suppliers and customers but cautioned against measures that could increase red tape and drive up costs. As the market digests the implications of the report, Coles' stock surge reflects a sense of relief among investors that the regulatory outcome is less severe than some had feared.