Australia Intensifies Regulation of Supermarket Sector

A new study recommends making the grocery code of conduct mandatory and introducing significant fines for breaches, amid political debates over the need for divestiture powers.

• Australia is enhancing regulation of its supermarket sector to address imbalances in market power between suppliers and supermarkets.
• The government's new study recommends making the grocery code of conduct mandatory for supermarkets with annual revenues over $5 billion.
• Significant fines up to $10 million or 10% of annual turnover could be imposed for major breaches of the code.
• The proposal stops short of allowing the breakup of supermarket giants, favoring fines and enforcement over divestiture.
• Political debates emerge as some call for stronger measures, including divestiture powers, while others deem them too heavy-handed.

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