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The Australian Competition & Consumer Commission (ACCC) says supermarkets can continue working together until March 2021 due to COVID-19. 

The ACCC had granted interim authorisation in March to ensure the ongoing, reliable and fair supply of groceries.

ACCC commissioner Stephen Ridgeway said the ongoing authorisation would have clear benefits while the pandemic remained.

The draft determination allows supermarkets to coordinate with each other when working with manufacturers, suppliers, and transport and logistics providers.

It does not extend to retail pricing. Retailers, suppliers, manufacturers and transport groups can choose to opt in or out of any arrangements.

Ridgeway said the recent outbreak in Melbourne highlighted its value. He said: “Supermarkets and authorities able to meet and coordinate their responses rapidly, maximising the availability of groceries and other essential goods.

“The authorisation facilitates supermarkets working together to ensure everyone, including vulnerable consumers or those from rural and remote areas, have fair and reliable access to fresh food, groceries and other household goods.”

Authorisation covers only discussions and agreements made at meetings convened by government agencies, including the Department of Home Affairs’ Supermarket Taskforce and its working groups, and the National Indigenous Australians Agency’s COVID-19 working groups. The ACCC attends these meetings when relevant issues are discussed.

The ACCC will now seek submissions on the draft determination. Details on how to make a submission, including a statement of reasons, are available on the ACCC’s public register at Coles Group on behalf of itself and participating supermarkets.

Submissions close Friday 31 July 2020.

 

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