The Federal Government is set to amend the Trade Practices Act to deal with creeping acquisitions, in a bid to limit the market power of the major retailers. The move will ensure the Australian Competition and Consumer Commission (ACCC) has the ability to reject acquisitions that would substantially lessen competition in any local, regional or national market, Competition Minister Dr Craig Emerson said. “This comes after private legal opinion questioned whether the ACCC has the power to consider... ...Read more »

Creeping acquisitions, the notion of large companies purchasing small businesses to beat competition law, are under the spotlight following the release of the Federal Government’s latest discussion paper on the issue. The idea of strengthening the Trade Practices Act with a “creeping acquisitions” provision was a recommendation that came out of the ACCC’s Grocery Price Inquiry last year. The ACCC’s concern was that the current competition laws gave no power to stop many... ...Read more »

The GROCERYchoice website continues to come under attack, with independent supermarkets, the Federal Opposition and leading retail industry bodies all indicating a lack of support for the scheme. The site, which highlights to consumers the cost of certain baskets of goods at different grocery chains in their area, has been criticised as a “stunt”, “unfair” and too “broad” by some sections, but the Federal Government continues to defend the website. As a host of... ...Read more »

The ACCC report into the state of competition in the grocery industry has been released, with a number of recommendations mooted to improve competition. It should be noted, however, that the ACCC believe the issue of food inflation may have been overstated in some quarters. Australian Food News reports on the ACCC’s response to the major issues raised during the Inquiry. In General – Key Findings The ACCC suggest that the current nature of grocery retailing in Australia is “workably... ...Read more »

The Rudd Government today released its preliminary action plan in response to the Report of the ACCC inquiry into ‘the competitiveness of retail prices for standard groceries’. The Report reveals there is real reform to be had in Australia’s grocery sector, according to the Government. Despite the Report establishing that “grocery retailing is workably competitive” it also highlighted a number of factors that currently limit the level of competition including “the... ...Read more »

The National Farmers’ Federation (NFF) is looking forward to the Australian Competition and Consumer Commission (ACCC) providing the results of its much-anticipated Grocery Price Inquiry to the Australian Government tomorrow. “Farmers are, quite literally, at the bottom of the food supply chain,” NFF Vice-President Charles Burke said. “Once our produce leaves the farm we have no idea where the added costs that consumers bear come from.” Mr Burke added that... ...Read more »

Former Australian Competition and Consumer Commission (ACCC) Chairman, Allan Fels has warned that town planning laws are currently a “tragedy for consumers” and suggests that action needs to be taken to ensure preferential treatment is not given to the leading retailers. “The planning laws restrict competition -they protect the big shopping centres,” Professor Fels said. Professor Fels made his comments at an Urban Taskforce luncheon – just a week before the ACCC finalises... ...Read more »

Insight Partners and Citi Investment Research have today released a comprehensive report outlining the impact of unit pricing on retailers, consumers and suppliers in Australia. EBIT (Earnings Before Interest and Tax) are likely to be affected with a drop of about 5% anticipated for retailers and suppliers of packaged goods. The issue of unit pricing has been on the agenda for about a year and has been heavily promoted by consumer advocates CHOICE and Family First Senator Steve Fielding. It was initially... ...Read more »