Albanese and Treasurer Jim Chalmers last week named former Labor cabinet ministerCraig Emerson to review the Food and Grocery Code of Conduct,a voluntary scheme set up by supermarkets to promise fair treatment for grocery suppliers.
Chalmers is also in talks with ACCC chair Gina Cass-Gottlieb about whether to give the regulator formal power to launch a price inquiry into the supermarkets.
Cass-Gottlieb toldThe Australian Financial Review this week she was “carefully looking” at whether to take legal action against one big supermarket chain over alleged deceptive conduct with discounts promised to consumers.
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A broader,concern,however,is the strength of the Competition and Consumer Act in stopping mergers that are likely to substantially lessen competition,a key issue in retail because Coles and Woolworths have used takeovers to expand or protect their market share. The two big chains have 70 per cent of the market,while the third-largest chain,Aldi,has 10 per cent.
“The ACCC does not have the tools it needs to see and prevent all anti-competitive mergers,and it means that harmful mergers may be taking place under the radar,” Cass-Gottlieb said in a submission to the government last month.
Chalmers and Assistant Treasurer Andrew Leigh are considering changes to competition law under a review they launched last year.
Albanese sent a clear message on Tuesday that he would agree to stronger powers for the ACCC if it sought the changes. “If the ACCC asks for more power my government’s up for giving it to them,” he said.
“We have the review by Dr Emerson,looking at whether the existing voluntary code of conduct is good enough,and whether there’s a need for some mandating there. We are very concerned about the cost of living.”
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