Canberra will be tough on pricing but not on mergers

Significance Under pressure on cost-of-living issues, Canberra is reviewing competition laws to see what effect market dominance may be having in a handful of major sectors, including banking and supermarket retailing. There may be options for removing some obstacles to entry, including some of those affecting foreign firms. Impacts Canberra may increase its power to require asset divestments if market power is adjudged to have been misused. Distortion of supermarket supply chains is making farming uneconomical and could threaten food security, giving impetus to the ACCC review. A code of conductor for retailers may transition from a voluntary to a mandatory status.