Media Release

Federal KAP Member for Kennedy Bob Katter today praised Rod Sims and the ACCC after Coles was fined $11.25 million in the Federal Court for supplier mistreatment.

The ACCC’s action against Coles was over demanded payments from suppliers to fill ‘profit gaps’ – the difference between actual sales and internal product sales targets.

The Federal Court today found that Coles had engaged in unconscionable conduct in demanding those payments.

Mr Katter said in 2002 the AC Neilson series had Woolworths and Coles’ market share at 74 per cent. The Australian Bureau of Statistics had the two at 68 per cent.

Mr Katter said there was no doubt that in 2014 Woolworths and Coles would have had over 85 per cent of market share.

In contrast, the latest figures out of America showed Walmart and its nearest rival had only 23.1 per cent of market share.

“There is no other country on earth that would tolerate such a concentration of market power, a complete prostitution of the market place.

“This is not as a result of Coles and Woolworths’ actions but as a result of government inaction.

“Coles and Woolworths are not doing this because they’re bad or evil, they’re doing it because they can.

“Coles has previously advertised bread as fresh when it was reportedly weeks or months old and frozen in Ireland.

"To me both today’s issue and the bread issue is classical oligopolistic behaviour.

“I cannot over emphasise that it is not Coles and Woolworths’ fault – it is their job to maximise profits. They are not Santa Clause – their shareholders want them to maximise profit.

“Until the government addresses the structural problem and stops preaching (and practicing) marketism, these events will continue,” Mr Katter said.