“The government has put supermarkets on notice, and the message is clear: change at pace to increase competition and be prepared for regulation,” Minister of Commerce and Consumer Affairs David Clark said on Monday in Wellington. “The supermarket industry doesn’t work. It’s not competitive and shoppers aren’t getting a fair deal. The duopoly needs to change, and we are preparing the necessary legislation to do that.
The government is targeting the wholesale arms of the two big companies, arguing they should be accessible to smaller rivals and new entrants. Earlier this month, the government introduced a law to stop existing operators from putting covenants over land in certain suburbs and shopping malls where rivals may seek to build.
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