Former ACCC chairman Allan Fels says the threat of being broken up would have a "tremendous deterrent effect" on supermarket price gouging.Former Australian Competition and Consumer Commission chairman Allan Fels says government break-up powers would be a "tremendous deterrent" to supermarket price gouging.A former head of Australia's competition regulator says its latest crackdown on supermarket giants is unlikely to provide a lasting curb against price gouging.
"It is rather extraordinary that you have a coalition, a Liberal Party in 2024, along with the Greens Political Party, that have the same policies of breaking up capitalism," he said. "It's easy to paint a frightening picture and ignore the fact that it's just used occasionally in the US and would only be occasionally used here," he said.Australia's supermarket sector is one of the most concentrated in the world, with Woolworths and Coles accounting for more than 65 per cent market share with almost 2,000 stores combined.
The same alleged practices were identified in submissions to a price-gouging inquiry led by Professor Fels for the Australian Council of Trade Unions, with the report issued in February. Professor Fels said no single reform was "going to work miracles" and "the best single thing would be if we get a new player in".Photo shows A number of illustrations of grocery items, like milk, apples, sausages, around two 'specials' signs 'half price' and '40% off'.The ACCC is seeking significant penalties for the alleged misconduct by Coles and Woolworths, which the consumer watchdog claimed took place in a period when inflation peaked at 7.
Mr Jericho said the case highlighted the need for stronger powers for the ACCC, including the threat of divestiture and a new prices commission. Coles and Woolworths campaigns promised cheaper prices for years. Now they're accused of 'misleading' customers on more than 500 products