Commencing mid-2012, MGA, on behalf of its members embarked on a major drive to inform our legislators of the unfair practices of the Chains and the impact of allowing the current unfettered drive for market share between the two giants, to go unheeded.
The following infographs were produced to coincide with the results from the MGA survey.
The MGA survey was conducted against the backdrop of a root and branch review into Australia’s competition laws. An independent committee of experts chaired by Professor Ian Harper made an interim finding in late 2014 that an “effects” test should be introduced into Australian competition law. The Harper review has since completed its final report to the Minister for Small Business, the Hon Bruce Billson MP.
MGA's submission to the Harper Competition Policy Review Panel
This video illustrates, via animation, the enormous amount of market power and dominance that Coles and Woolworths have acquired over time in the current market place.
The content of the MGA’s original report left no doubt in the readers’ minds that Australia, like no other country in the world, is facing the reality of having the independent retail sector crowded out and further supermarket and packaged liquor competition being discouraged, through a pattern of anti-competitive behaviour by the duopoly. This second report builds upon the earlier release and fuses valuable inputs and discussions from many quarters over the last twelve months.
This report reveals a number of anti-competitive policies and practices that depend on enormous market power, including: anti-competitive price discrimination, shopper docket schemes, ‘store saturation’ strategies and over-sized store strategies. These practices assist the growth of the dominant players by unfairly handicapping smaller independent competitors.