ACCC to investigate Coles, Woolies

According to an article in smh.com.au, accusations that Australia's two grocery giants, Coles and Woolworths, engaged in improper practices to force down prices from suppliers are being investigated by the nation's most powerful competition regulator.

The head of the Australian Competition and Consumer Commission, Rod Sims, will investigate the two retailers - which between them control an estimated 70 per cent of the nation's grocery spending - about potential breaches of the law and bullying tactics against food and grocery suppliers.

The ACCC has warned it will use its compulsory information powers to collect evidence.

It comes as Wesfarmers, the conglomerate that owns Coles, confirmed that it had pushed Coles executives to further investigate accusations of wrongdoing and misuse of market power when dealing with its own suppliers.

''We are doing our own investigations and obviously the ACCC is doing its and we will just let it all unfold,'' the Wesfarmers boss, Richard Goyder, is quoted as saying in the report.

About 50 suppliers to the big chains have responded to the ACCC to come forward with evidence of unconscionable behaviour, under the promise of protection of their identity.

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