In an effort to boost competition in Australia, Anthony Albanese has urged the government to allow a new supermarket chain to enter the country.
Despite the Prime Minister’s insistence that he doesn’t intend to forcibly break up the major supermarkets, he’s also indicated that he’ll work with the states to encourage new entrants.
There have been speculations about Amazon Fresh entering Australia for some time now.
The concept of the chain is described as a cash-free and creepy supermarket.
Its customers don’t have to remove their wallets to pay, and the company relies on store CCTV footage to monitor the items that are taken off the shelves.
Customers of Amazon are charged for purchases using their credit card.
Although Amazon Fresh has not yet appeared in Australia, a German retailer known as Kaufland was reportedly planning on opening 12 stores in the country, but these plans have since been abandoned.
During a radio interview on Friday, Mr Albanese criticized the dominance of the major supermarkets, saying that they’re ripping people off.
In Australia, the major supermarkets have a significant stranglehold on the market.
According to Mr. Albanese, the high concentration of power has led to the multiple inquiries that have been carried out in an effort to boost competition. One of the solutions he’s suggested is to encourage new entrants. He noted that the prices of certain products often don’t reflect the actual cost of production.
During his interview, the Prime Minister noted that he’ll look into recommendations that seek to encourage new entrants in the market. He said that competition would lead to lower prices for consumers. In some areas, there are no duopoly structures and there are monopolies in others.
Bill Shorten, the Minister for the National Disability Insurance Scheme, also noted that the government would not break up the major supermarkets. He said that the chains need to be held accountable, and the government would do whatever it takes to ensure that the prices of goods and services are competitive.
The opposition’s finance spokesperson Jane Hume said that it was frustrating for consumers to see that the major supermarkets were still ripping them off. She questioned why it took the government so long to act on this issue, given that the cost of living had been the top concern of many people a year and a half ago.
There’s no doubt that competition can be achieved in the supermarket industry, Hume noted, but she questioned why the major chains were still allowed to maintain their stranglehold on the market. She suggested that the government should look into allowing smaller competitors into the market.