Australian government enforces mandatory Food and Grocery Code of Conduct against anti-competitive practices by supermarkets against suppliers.

The Australian government plans to enforce a mandatory Food and Grocery Code of Conduct to tackle anti-competitive practices by supermarkets against suppliers, following complaints of large supermarkets squeezing smaller suppliers, particularly those producing fruit and vegetables. The mandatory code will make the present voluntary code binding, with penalties of up to $10 million or three times the benefits gained from contravening conduct, or 10% of a company's turnover in the last 12 months. The code will cover all grocery retailers and wholesalers with an annual turnover of over $5 billion, including Woolworths, Coles, ALDI, and Metcash. The mandatory code aims to address the imbalance in market power between supermarkets and their suppliers, particularly smaller suppliers.

June 23, 2024
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