Big business in Australia faces less competition than almost anywhere else

‘Most people have only one or two supermarkets in easy reach, and splitting Coles and Woolworths into two or more competing businesses wouldn’t change that.’‘Most people have only one or two supermarkets in easy reach, and splitting Coles and Woolworths into two or more competing businesses wouldn’t change that.’

Explanations based on greed are rather naive. Corporate executives are paid by shareholders to be greedy – that is, to maximise profit subject to a somewhat hazy concept of “social licence” regarding the treatment of customers, employees and other stakeholders. And there is no reason to think that Coles andThe role of monopoly power is a bit more complex. Coles and Woolworths dominate the market, but if anything their dominance has eroded in recent years as Aldi’s market share has grown.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundupwhere divestiture powers could be a useful tool for competition policy. Perhaps the most notable example is that of airlines. The Sydney-Melbourne-Brisbane “golden triangle” comprises three of the busiest city-pair routes in the world, and ought to be fiercely competitive.

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