Promoting a more diverse and competitive Australian supermarket sector

There can be no doubt that as markets become more concentrated, the risks to competition and consumers increase. The risk of anti-competitive conduct, along with a tendency to engage in marketing strategies that may potentially mislead consumers, are all issues that need to be carefully and regularly scrutinised. The Australian supermarket sector provides an important case study of the dangers of highly concentrated markets. With just two supermarket chains sharing a dominant position, it is clear that there are increasing risks to competition and consumers in that all-important sector of the economy. This article explores some of the key risks to competition and consumers and offers a range of reform proposals to minimise such risks.