Senate Committee to Probe Major Supermarket Market Power and Grocery Prices

In response to the mounting concerns over escalating prices of everyday groceries juxtaposed with the surging profts of major supermarkets, a new Senate Committee is set to delve into the market dominance of these retail giants and its impact on consumer costs.

The establishment of this Committee comes on the heels of increased supermarket revenues, while Australians grapple with heightened expenses at the checkout. The supermarkets attribute these price hikes to growing cost pressures, prompting the need for a comprehensive investigation.

Perin Davey, Deputy Leader of the Nationals, highlighted that the Committee’s inception was made possible through a Senate motion introduced by The Greens, which saw unanimous support in the Senate.

Amidst the backdrop of soaring living expenses, Senator Davey emphasized the timeliness of examining whether the consolidation of market power within the supermarket sector contributes to these challenges. The inquiry aims to scrutinize pricing practices, particularly concerning the discrepancy between what consumers pay and what farmers receive.

Senator Davey underscored the signifcance of exploring the regulatory framework to identify potential modifcations that could mitigate the rising prices. This encompasses reviewing suppliersupermarket interactions and assessing the role

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of multinational food corporations in the market.

Despite calls to bolster the Australian Competition and Consumer Commission’s (ACCC) authority to oversee these concerns, no action has been taken by the Government.

Consequently, the Committee steps in to scrutinize the behavior of major supermarkets and their pricing strategies, with the aim of formulating suitable recommendations.

Welcoming public submissions, the Committee is slated to present its conclusive report by May 7, 2024. Further details about the inquiry and submission processes can be accessed via the Select Committee on Supermarket Prices page on the Parliament of Australia website.