Australia Cracks Down on Supermarket Giants with New Supplier Protection Bill

The Australian government introduced a bill to parliament imposing heavy fines on big supermarket chains for breaching a mandatory industry code of conduct designed to protect suppliers. The bill targets market leaders like Woolworths and Coles, aiming to prevent them from stifling competition, mistreating suppliers, and overcharging consumers.

The Australian government has taken a bold step to safeguard suppliers by introducing a bill that could impose billion-dollar fines on major supermarket chains. This legislation targets giants such as Woolworths, Coles, ALDI, and Metcash, requiring them to adhere to a previously voluntary industry code of conduct starting April next year.

The code aims to prevent supermarket chains from stifling competition, mistreating suppliers, and overcharging customers—a move welcomed by many including farmers and politicians who have criticized the chains for their practices. Fines could reach up to 10% of annual turnover for violations, signaling strong government intervention in the concentrated supermarket sector.

With Woolworths and Coles controlling two-thirds of the grocery market, Australia's move reflects a broader effort to enhance competition and protect consumer interests amid rising inflation. The bill is expected to impact the upcoming election, as mitigated supermarket practices could help in regaining public support for the center-left Labor government.

(With inputs from agencies.)