ACCC report slams Coles and Woolworths ‘oligopoly’

(Image: AAP/Darren England) ACCC VS SUPERMARKETS The Australian Competition and Consumer Commission (ACCC) has listed concerns over how the major supermarkets are operating in its interim report on the sector. The report comes after the commission said it would take Coles and Woolworths to court over claims of misleading specials. “Oligopolistic market structures can limit incentives to compete vigorously on price,” the commission’s deputy chair Mick Keogh is quoted by the AAP as saying.

“We see Woolworths and Coles providing a broadly similar experience to customers through largely undifferentiated product ranges, pricing at similar levels and similar non-price offerings including loyalty programs.” Guardian Australia reports the commission found grocery suppliers had raised “concerning” issues, including being required to pay rebates for promotions to supermarkets. The ACCC then used compulsory information-gathering powers to examine the reported behaviour.

Keogh said customers were struggling to compare prices and felt forced to take part in loyalty programs and hand over personal information. “Many consumers have told us that they are losing trust in the sale price claims by supermarkets,” he said. AAP reports Prime Minister Anthony Albanese has said his government would examine the report closely.

“Customers don’t deserve to be treated as fools by the supermarkets — they deserve better than that. My government is taking a range of actions to make .