The Australian Competition and Consumer Commission is set to undertake a 12-month inquiry into pricing within the supermarket industry, Prime Minister Anthony Albanese announced at the National Press Club on Thursday (25 January).
The ACCC’s inquiry will examine supermarkets’ pricing practices, the relationship between wholesale - including farm gate - and retail prices, and competition in the sector.
The last competition inquiry was in 2008, which found more than 700 potentially restrictive leases in shopping centres that prevented them from leasing space to other supermarkets. Coles and Woolworths provided enforceable undertakings to no longer do so.
ACCC Deputy Chair Mick Keogh said, “Competitive markets encourage more attractive combinations of price and quality for consumers, as well as greater choice.
“Our inquiry will examine the nature of the current competitive environment between supermarkets, as well as the barriers to greater competition and new entry in the sector.”
The commission will publish an issues paper in February seeking feedback on the key issues the inquiry will cover, with an interim report later this year, and a final report early next.
ACCC chair Gina Cass-Gottlieb said, “We will use our full range of legal powers to conduct a detailed examination of the supermarket sector, and where we identify problems or opportunities for improvement, we will carefully consider what recommendations we can make to government.”
Albanese also said consumer organisation Choice will then be funded to provide consumers with a clear understanding of how supermarkets are performing against that score.
“We are backing Choice – renowned for their commitment to consumer fairness - to provide clear and regular information on prices across a basket of goods.
“Because across thousands of products it can be hard for people to find the best deal.
“This will promote transparency, enhance competition and drive value,” he said.
