Australia competition watchdog lets supermarkets coordinate to ensure supply

Supermarkets have experienced shortages as demand surged.

The Australian Competition and Consumer Commission (ACCC) has temporarily allowed supermarket operators to coordinate with each other to be able to provide groceries during the pandemic, according to a media release.

The interim authorisation will allow supermarkets to coordinate with each other when working with manufacturers, suppliers, and transport and logistics providers. This aims to ensure the supply and the fair distribution of fresh food, groceries, and other household items.

The authorisation also allows a range of coordinated activities but does not allow supermarkets to agree on retail prices for products.

According to ACCC Chair Rod Sims, Australia’s supermarkets have experienced a surge in demand for both in-store and online groceries, which has led to shortages of some products and disruption to delivery services.

“This is essentially due to unnecessary panic buying, and the logistics challenge this presents, rather than an underlying supply problem,” he said.

This authorisation applies to local supermarket chains Coles, Woolworths, Aldi and Metcash, as well as grocery retailers. Grocery retailers, suppliers, manufacturers and transport groups can choose to opt out of any arrangements.