Major supermarkets on notice by ACCC

THE new head of Australia's competition watchdog has the major supermarket chains, airports and the telecommunications sector in his sights.


Australian Competition and Consumer Commissioner chairman Rod Sims said the two major supermarket chains Coles and Woolworths still had significant market power.


"Many smaller suppliers to the supermarkets feel they lack a real ability to negotiate supply arrangements," Mr Sims told a Melbourne Press Club function today.


"The ACCC can and will watch closely to ensure any such dealings do not involve unconscionable conduct by the supermarkets."


He said the ACCC would also closely watch the vertical integration in the supply chain, where the supermarkets sold both branded and their own private label products, to ensure they did not misuse their market power.






The ACCC called for tougher regulation of airports to cut down on monopolistic behaviour on car parking and services to airlines.


For services such as car parking, court-enforceable undertakings that set minimum terms and conditions would need to be submitted by airports with significant market power.


"We think that's a much more effective thing than simply price controlling car parks which I think is quite difficult," Mr Sims said.


"We think if we can get effective competition then the airports wouldn't be able to set the prices as they do now in an unconstrained way."


On telecommunications, Mr Sims said the ACCC was concerned about the rollout phase of the national broadband network when service providers would continue to be reliant on Telstra's copper network.


On telecommunications, Mr Sims said the ACCC was concerned about the rollout phase of the national broadband network when service providers would continue to be reliant on Telstra's copper network.
"During the transition it is critical that there is equivalence of outcomes, that there is a level playing field so that the competitive landscape is not distorted as the NBN is rolled out."
Mr Sims, who took over as ACCC chairman on August 1, also said the ACCC would put wheat exporting facilities under the microscope.
Asked about his style as chairman, Mr Sims said certain procedures had to be followed by the ACCC.
"I don't really see myself in a smoke-filled room at the end of the day negotiating agreements.
"I think the role of the chairman is to bring a strategic focus.