- Reuters
Australia to make supermarket industry code mandatory, breaches may result in huge fines
SYDNEY (Reuters) -Australia could impose billion dollar fines on big supermarket chains that fail to comply with an industry code of conduct, the federal government said on Monday as it seeks to address concerns that suppliers have been unfairly squeezed on pricing. Grocers with more than A$5 billion ($3.3 billion) in annual revenue - currently Woolworths, Coles, Germany's ALDI and wholesaler Metcash - will be made to comply with the code of conduct that has until now been voluntary, the federal government said. The move comes after a report by former competition minister Craig Emerson found the current code was "failing to address the imbalance of bargaining power between supermarkets and their suppliers, including farmers", the federal government said.
- Reuters
Australia supermarkets should face hefty fines for code of conduct breach, says report
SYDNEY (Reuters) -Australia's major supermarkets should face hefty fines if they do not comply with an industry code of conduct when dealing with suppliers, a government-commissioned report said while rejecting calls to give regulators the power to break up the big chains. Supermarkets with more than A$5 billion ($3.3 billion) in annual revenue - which at present are Woolworths, Coles, Germany's ALDI and wholesaler Metcash - should be forced to comply with the code of conduct that has until now been voluntary, the interim report by former competition minister Craig Emerson recommends.
