ACCC should scrutinise Coles and Woolworths’ market power, former watchdog chair says

Allan Fels says duopolies have a mutual incentive not to decrease prices, noting Australia’s major supermarkets have not had a price war in years

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The competition regulator should scrutinise Australia’s major supermarkets for using their market power to expand profits and exert pricing pressure over consumers, farmers and other suppliers, according to recommendations by the former watchdog Allan Fels handed to the federal government.

Fels, presenting the initial findings of an ACTU-led price gouging inquiry he recently chaired, said in a letter to the federal treasurer on Monday there were also potential problems with supermarket promotions, with once-normal prices now regularly advertised as specials.

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