Prime Minister Albanese has acknowledged concerns about the "excessive" market power held Coles and Woolworths
Source: The DairyNews
Prime Minister Anthony Albanese has acknowledged concerns about the "excessive" market power held by supermarket giants Coles and Woolworths, emphasizing that something is amiss with the current state of supermarket pricing.
Despite widespread pressure and calls for divestiture measures to break up the duopoly, the Prime Minister has opted for a cautious approach, refusing to wield a "hammer" against the major retail players.
As Australians grapple with a 14% surge in the cost of food and drink over the past two years, Coles and Woolworths have faced sustained scrutiny over their pricing practices. Recent revelations on ABC's 4 Corners shed light on tactics employed by the supermarket giants to bolster their profits, although executives from both companies dismissed allegations of price gouging.
Addressing the issue on ABC News Radio, Prime Minister Albanese acknowledged the giants' "excessive market power" and expressed concern about the disconnect between the prices paid to farmers and those paid by consumers at the checkout. While multiple inquiries are underway, including one by the competition watchdog with powers to compel evidence, the results are not expected until 2025.
When questioned about the timeline, Albanese hinted that the government would not wait for the inquiry's conclusion to take action. However, he dismissed the idea of using divestiture powers to forcibly dismantle the supermarket duopoly, stating that Australia is "not the old Soviet Union." Instead, he emphasized a common-sense approach, maintaining a "market-based economy with appropriate regulation."
The Prime Minister, noting that Coles and Woolworths collectively hold 65% of the market, expressed interest in welcoming more international chains into the Australian market. Nationals leader David Littleproud criticized Albanese's Soviet comparison, pointing out that countries like the United States and the United Kingdom have divestiture powers. Littleproud argued that divestiture powers should not be ruled out before the inquiry's findings and advocated for legislation, including divestiture powers, to address rising grocery prices and curb inflation. The Nationals intend to push for further support in Parliament to empower the ACCC with the necessary tools to keep supermarket practices in check.
As Australians grapple with a 14% surge in the cost of food and drink over the past two years, Coles and Woolworths have faced sustained scrutiny over their pricing practices. Recent revelations on ABC's 4 Corners shed light on tactics employed by the supermarket giants to bolster their profits, although executives from both companies dismissed allegations of price gouging.
Addressing the issue on ABC News Radio, Prime Minister Albanese acknowledged the giants' "excessive market power" and expressed concern about the disconnect between the prices paid to farmers and those paid by consumers at the checkout. While multiple inquiries are underway, including one by the competition watchdog with powers to compel evidence, the results are not expected until 2025.
When questioned about the timeline, Albanese hinted that the government would not wait for the inquiry's conclusion to take action. However, he dismissed the idea of using divestiture powers to forcibly dismantle the supermarket duopoly, stating that Australia is "not the old Soviet Union." Instead, he emphasized a common-sense approach, maintaining a "market-based economy with appropriate regulation."
The Prime Minister, noting that Coles and Woolworths collectively hold 65% of the market, expressed interest in welcoming more international chains into the Australian market. Nationals leader David Littleproud criticized Albanese's Soviet comparison, pointing out that countries like the United States and the United Kingdom have divestiture powers. Littleproud argued that divestiture powers should not be ruled out before the inquiry's findings and advocated for legislation, including divestiture powers, to address rising grocery prices and curb inflation. The Nationals intend to push for further support in Parliament to empower the ACCC with the necessary tools to keep supermarket practices in check.
