Australia’s government is taking action to address anti-competitive behavior in the grocery sector by accepting all recommendations from a review of the country’s grocery code. The updated code will result in supermarket groups facing significant fines for any violations. Treasurer Jim Chalmers emphasized the importance of strengthening the code to ensure fairness for families and farmers, leading to more competitive supermarkets and better prices for consumers.
Australia’s grocery market is currently dominated by major players like Woolworths and Coles. The government commissioned a review of the Food and Grocery Code of Conduct to protect suppliers and promote competition. The review highlighted the need for mandatory compliance with the code and improved dispute resolution mechanisms. Penalties for breaches of the code will be more severe, with fines of up to A$10 million or 10% of turnover for the most serious violations.
The government plans to implement these recommendations by making changes to regulations and the Competition and Consumer Act 2010. In a separate inquiry into supermarket price gouging, the Senate recommended measures to prevent unfair pricing practices and strengthen the food and grocery code of conduct.
Overall, these steps aim to create a more equitable and competitive grocery sector in Australia, benefiting both suppliers and consumers. Companies operating in the food and beverage industry need to stay informed about these developments to adapt to changing market dynamics and consumer trends. Keeping abreast of industry trends and complying with regulatory requirements is essential for success in the food and drink business. Sign up for our daily news round-up to stay informed and gain valuable industry insights.
