The Australian Competition and Consumer Commission said Endeavour Group's proposed acquisition of the Prince Consort Hotel has raised preliminary competition concerns.

Endeavour, a major Australian alcoholic drinks retailer, already operates two liquor stores within 300m of Prince Cellars in Fortitude Valley.

The ACCC is worried that the acquisition could substantially diminish competition in the local area for takeaway liquor, removing the strongest independent competitor to Endeavour's nearby stores.

The watchdog is also assessing the impact on other Fleet Street banner stores, the wholesale liquor supply market, and the hospitality industry.