Supermarket splits if watchdog given teeth
The consumer watchdog would be given new powers to bust apart Australia’s supermarket duopoly if they are found guilty of anticompetitive behaviour, if a new bill for divestiture laws is passed by parliament.
Under the proposed legislation, the Australian Competition and Consumer Commission (ACCC) could force the nation’s grocery giants to sell off parts of their operation if they were found to be engaging in practices such as price gouging or market power abuse.
NSW Farmers Vice President Rebecca Reardon said the development was welcome news to the peak farming body, which had long been calling for the powers to be introduced to address serious market power imbalances in the supermarket sector.
“Australia’s supermarket sector is one of the most concentrated in the world – and for years, we have seen farmers subject to gross market power imbalances as a result of this environment,” Mrs Reardon said.
“In the recent Senate inquiry into supermarket prices, divestiture powers were one of the key solutions we presented to combat the anticompetitive behaviour of these giant middlemen, and it is a relief to hear this recommendation heard.”
As the bill entered the Senate this week, Mrs Reardon said many hoped meaningful competition reform was now on the horizon for the sake of farmers and families, who deserved fairer prices for their food.
“Farmers shouldn’t have to accept prices below the cost of production, or contract terms on a ‘take it or leave it’ basis, nor should they have to face the prospect of produce being rejected for no given reason,” Mrs Reardon said.
“Yet that’s been the reality for the agricultural industry as to date, there hasn’t been the powers available to bring these bad behaviours to account.
“There’s now real hope on the horizon for farmers and rural communities who have been suffering with unfair prices at the farm gate, as well as families who shouldn’t be paying the prices they do at the checkout.”
Date: Tuesday, March 26, 2024
Media Contact: Eliza Fessey | 0427 411 220 | [email protected]