Business Council Issues Warning on Greens’ Legislation to Fragment Supermarket Dominance
Attempting to hastily pass laws that come with significant unintended consequences, such as causing harm to consumers through raised prices, is not the solution.
The effort to dismantle the supermarket duopoly might result in customers having to pay more and grant excessive control to the government, cautioned a prominent business group.
This warning follows the proposal by the left-leaning Greens for a divestiture power bill, which would authorize the Australian consumer watchdog and the judiciary to compel Coles and Woolworths to sell off their assets if they are deemed uncompetitive.
The Greens accused these supermarket giants of exploiting their market dominance to exploit prices and amass substantial profits in the midst of a cost-of-living crisis.
If the bill is approved by the Senate on March 27, it would empower the courts and competition regulators to dismantle the supermarket duopoly and rein in their powers, as argued by the Greens.
However, CEO Bran Black of the Business Council of Australia (BCA) cautioned that the bill would not address ongoing issues, such as price transparency from farm to shelf, and would not alleviate inflation pressures.
Instead, he cautioned that the proposed law would intensify financial strains and jeopardize employment.
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