Australia's Government to Investigate Pricing Behavior of Major Supermarkets
By James Glynn
SYDNEY--The Australian government has called for a yearlong probe into the pricing behavior of the country's major supermarkets as part of efforts to ease a cost-of-living crisis.
The Australian Competition and Consumer Commission, the country's competition watchdog, will conduct the inquiry into pricing and competitive practices among the big supermarket retailers, including Woolworths, Coles and Aldi.
The 12-month ACCC inquiry will investigate allegations of price gouging in the supermarket sector, the government said in a statement.
"When farmers are selling their product for less, supermarkets should charge Australians less," Prime Minister Anthony Albanese said in a statement.
"That's why the ACCC will use its significant powers to probe the difference between the price paid at the farm gate, and the prices people pay at the check-out," he said.
The decision comes amid a cost-of-living surge in Australia, with household budgets under massive strain due to a record rise in interest rates and big jumps in prices for essential items such as residential rents.
The investigation will also include a review of the food and grocery code of conduct and examine the current structure of the supermarket industry at the supply, wholesale and retail levels, the government said. The level of competition in the industry and how it has changed since 2008 will also be a key focus.
The ACCC will produce an interim report in 2024 and a final report in early 2025, which will provide the government with findings and recommendations.
Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
January 24, 2024 22:52 ET (03:52 GMT)
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