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Australia: ACCC takes on Coles for ‘unconscionable’ dominance abuse

By  |  May 5, 2014

The Australian Competition and Consumer Commission is cracking down on retail giant Coles for what it calls “unconscionable conduct” regarding its business practices with hundreds of small suppliers, say reports.

The ACCC has launched legal action against Coles over allegations the conglomerate forced 200 small suppliers into anticompetitive agreements that gave Coles unfair rebates. In all, the ACCC said, Coles obtained about $16 million from those deals.

According to reports, the markdowns were calculated based on ordering patterns, among other factors. The watchdog released a statement Monday about the case, claiming Coles would “threaten commercial consequences if the supplier did not agree” to these deals.

Coles denies any wrongdoing and said it would contest the allegations.

The claims are part of the ACCC’s broader probe into the supermarket industry and major chains’ relationships to smaller suppliers.

Full content: The Guardian

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