Emerson says breaking up supermarkets ‘too heavy handed’ as Dutton derides ‘Mickey Mouse review’

Review chief defends decision not to recommend powers that could break up supermarkets for bad behaviour

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The architect of Australia’s revamped grocery code of conduct, Craig Emerson, has defended his decision not to recommend powers that could force the breakup of big supermarket chains for bad behaviour, describing such a penalty as “too heavy handed” and not a credible threat.

While an interim report into the code, which governs how major chains deal with suppliers and customers, has left the door open for supermarkets to be hit with significant fines, it stops short of calling for the sorts of powers called for by some competition experts.