ACCC considering allegations against Coles and Woolworths
13 Sep 2012
The Australian Competition and Consumer Commission (ACCC) said it was considering allegations by an independent supermarket group that Coles and Woolworths had been misusing their market power but warned it was difficult to prove such allegations.
According to Master Grocers Australia, the supermarket giants had been cross-subsidising a large number of loss-making supermarkets as they sought to lower competition in the grocery sector.
ACCC chairman Rod Sims said at a speech in Melbourne yesterday even as he acknowledged the allegations that there were ''high hurdles'' set to prove misuse of market power.
''In order to meet the tests of conduct being against the law and anti-competitive, it has to be behaviour which is deliberately meant to damage competition,'' he told an Australasian Convenience and Petroleum Marketers Association conference. ''The fact that a new store will operate at a loss in its early days is usually considered normal commercial behaviour.''
He added to prove misuse of market power, the ACCC had to demonstrate the intentions of a company's actions, rather than just the effect of its behaviour, he said.
On a separate occasion he said the commission was continuing its examination of alleged ''unconscionable conduct'' by Coles and Woolworths in their dealings with suppliers.
