The stoush between what looks to be a somewhat revitalised ACCC under Rod Sims and Wesfsarmers is heating up. The Age reports that:
The ACCC chairman launched a blistering attack on the supermarkets before a Senate estimates committee in Canberra late on Wednesday night, when he laid out the accusations against the supermarkets.
The allegations include:
- Persistent demands for additional payments from suppliers beyond that negotiated to get its product into the store.
- The imposition of penalties that did not form part of any negotiated terms of trade, and which apparently do not relate to actual costs incurred by the major supermarket chains.
- Threats to remove products from supermarket shelves or otherwise disadvantage suppliers if claims for extra payments or penalties are not paid.
- Failure to pay prices agreed to with suppliers.
- Conduct discriminating in favour of home-brand products.
Mr Sims said that during the ACCC’s meetings with these suppliers their allegations were consistent.
”They largely told us of behaviour that had a high degree of consistency in many respects.”
Wesfarmers’ CEO, Richard Goyder took a few moments out of his busy G20 schedule to “hit back”, according to the AFR:
“The last thing we need in this country at the moment, with productivity challenges, is creating more layers of bureaucracy when they’re not required,” Wesfarmers managing director Richard Goyder said yesterday…he rejected the need for a formal code of conduct or further regulation. “What I don’t support is bureaucracy,” Mr Goyder told the media.
Who does! I’m wondering, though, if the 70% control of the grocery market generally ascribed to Coles and Woolies – that is, the total meltdown of competition in the sector – might weigh a little more on productivity than some bureaucratic phantom. Just a thought!
