The ACCC today announced that an agreement had been reached with Coles Group Limited and Woolworths Limited to phase out restrictive provisions in supermarket leases in order to promote competition in the industry.
Following its Grocery Inquiry in 2008, the ACCC found supermarket operators were including tenancy terms that prevented shopping centre managers leasing space to any competing supermarkets. Over 700 supermarket leases were identified throughout the course of the investigation.
Commenting on the agreement, ACCC chairman Graeme Samuel said: “This is a major breakthrough for grocery competition in Australia. Reducing the barriers to entry for new and expanding players opens the possibility for Australian consumers to have greater choice in where to shop and potentially pay lower prices as a result.”
Samuel said he was pleased both Coles and Woolworths agreed to remove any restrictive provisions in any new supermarket leases. The ACCC will now approach other supermarkets to do the same.
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