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A recent Senate inquiry led by the Greens has shed light on the pricing gaps between farmgate and check-out prices in major Australian supermarkets, particularly focusing on Coles and Woolworths. The inquiry aimed to address the dominance of these supermarket giants and their impact on suppliers’ leverage in the market.

While the inquiry failed to reach a consensus on breaking up supermarket monopolies, it proposed concrete steps to combat supermarket profiteering. There were disagreements among Senators regarding the introduction of divestiture powers, but there was support for making price gouging illegal and empowering the ACCC to investigate unfair trading practices more effectively.

The inquiry highlighted concerns about the significant market power held by Coles and Woolworths, which account for two-thirds of the market share. This dominance has long been a point of contention for suppliers who feel squeezed by the pricing strategies of these supermarket giants.

Calls were made for stricter regulations, penalties for breaches, and enhanced oversight to ensure fair practices within the supermarket sector. The push for greater transparency and accountability aims to create a more level playing field for suppliers and consumers alike.


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Article Title: Senate inquiry recommends powers to forcibly break up supermarkets and imposition of mandatory code of conduct
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