From the AFR:
The federal government could create room for a new grocery commissioner to oversee the troubled relationship between supermarket retailers and suppliers if increasingly protracted negotiations for an industry-drafted code of conduct fail.
Coles and Woolworths have been working with industry bodies since September to draft a mutually agreeable code, which is intended in part to stave off further investigation and possible legal action by the consumer watchdog into allegations of unconscionable conduct and misuse of market power in the $86 billion grocery market.
But early indications are that the government and the consumer watchdog remain underwhelmed by the retailers’ version, and were expecting something with more teeth.
…“It is the government’s view that any code needs to be strong enough to put a stop to the kind of behaviour some suppliers are reporting,” Mr Bradbury told The Australian Financial Review on March 1.
Fascinating stuff. Just like media, an egregious and vociferous duopoly that needs much more competition to serve the economy and its denizens with any distinction yet the answer of appointing a chaperon to monitor business is not likely to please anyone.
I am all for finding ways to wind back the market power of such behemoths but the real problem here is that these industry concentrations were allowed to develop in the first place. Unscrambling the egg is very difficult.
The politics of this may favour Labor in that they’ll be seen to being doing something. But the chorus of hate pouring out of the business press will only get louder.
