Treasurer Questions How Breaking Up Supermarket Giants Would Work

The Albanese government is not interested in adopting powers to break up major supermarket companies, with Treasurer Jim Chalmers highlighting several issues with the approach.
Mr. Chalmers was critical of the Coalition’s lack of detail around this policy.
“If you made supermarkets sell, are they allowed to sell to another big rival? Does it mean they close down more stores in local communities? And does that mean less competition rather than more competition in local communities?” he said on July 3.
Mr. Chalmers noted the steps the Albanese government had already made towards addressing competition issues.
Major supermarkets posting profits during the current cost of living crisis has spurred a wave of complaints about unfair pricing, unfair deals with farmers, and allegations of land banking.
“The situation in Australia at the moment is that there’s a massive concentration of market share within the two major companies, within Coles and Woolies,” Mr. Dutton claimed.
The move was a “clear message” that the Coalition stood with consumers and farmers, Mr. Dutton added.
Nationals leader David Littleproud said the three biggest supermarkets in Australia—Woolworths, Coles, and Aldi—make up about 74 percent of the market share.
“In the UK and U.S., their big three control about 30 to 40 percent of the market. So we have market concentration, and we are hearing the harrowing evidence from farmers who are being mistreated by supermarkets,” he said.
A Supermarket Commissioner role will also be established, which would hear complaints from farmers and suppliers, and conciliate between the parties.
Shadow Treasurer Angus Taylor noted that finding a balance was important.
“There’s some important safeguards we’re building into this initiative that are crucial to ensure that the balance is right, and distinguish this from other proposals that have been running around,” he said.