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Why hasn’t Craig Emerson proposed legislation regarding supermarket divestiture?
He expressed doubts about the feasibility of selling off supermarkets and questioned the impact on market concentration:
Imagine if Coles were forced to divest. Who would they sell to? Would selling to Woolworths increase market concentration? If they can’t sell to Woolworths, who else is left? Perhaps a foreign multinational, but they may not be interested. The only option then would be to close stores, which would be alarming for employees and customers, so I fail to see the logic behind it.
ABC RN host Sally Sara: What kind of penalties or fines would be in place if the big supermarkets are not toeing the line?
Craig Emerson:
If they engage in egregious, systematic behavior, the penalties could be substantial, like $10 million or 10% of the supermarket’s annual turnover in the previous months – which could amount to billions…
Emerson described this behavior as supermarkets instructing buyers to mistreat suppliers, violate contracts, remove them from listings, and exploit them for profit maximization.
While it is hoped that such behavior will not occur, having a watchdog overseeing their actions is crucial to ensure that supermarket management is aware of buyer conduct and does not condone or incentivize it.
Share11 minutes ago17.49 EDT
Emerson presents interim report on supermarkets
Former Labor trade minister Craig Emerson discussed his interim report on supermarket giants on ABC RN this morning, recommending a mandatory code of conduct.
Daniel Hurst provides more details below:
Australia’s major supermarkets could face fines of up to $10 million under a proposed mandatory codeRead more
Emerson’s inquiry focused on the relationship between supermarkets and suppliers, finding that better deals for suppliers do not necessarily lead to price increases:
If suppliers are struggling to survive, they won’t have the resources to invest in improving their products or lowering prices. This aligns well with the cost of living issue, and…
2024-04-07 16:41:59
Link from www.theguardian.com