“Competition is essential to our economic prosperity; it drives innovation and productivity, and it lowers costs and improves product quality,” Sims said. “While all economists welcome competition, of course businesses usually do not.”

He noted many promising signs for competition in retail. “In particular, competition is benefitting from online sales challenging the established bricks and mortar stores. Going forward, our main competition role in retail will be to ensure new entrants are not prevented from competing on their merits. We will, therefore, be alert to the consequences of large firms acquiring promising start ups, we will closely monitor access to data issues, and we will continue to support the proposed Harper changes to section 46.”

Sims then went on to discuss using laws to good effect, addressing supply chain issues and ensuring honest promotional claims so as to enhance competition in the retail sector.

He added that the ACCC has used the competition provisions of the Competition and Consumer Act 2010 to good effect in several areas of the retail sector, saying that the ACCC’s interventions had benefitted competition in areas such as restrictive supermarket leases and petrol retailing.

In providing an update on supermarket supplier issues, Sims said the ACCC has seen changes in the way retailers behave, but the problems have not been solved. “We are looking at reports of behaviour associated with the [Food and Grocery] Code and we are advising suppliers who have concerns about their dealings with the supermarkets to raise them with the ACCC, confidentially if required.”

Following actions involving Nurofen, Coles par-baked bread and Paddle Pops, Sims said providing consumer protection will very often enhance competition and the benefits that flow. “The Australian Consumer Law protects consumers, but it also has a powerful effect on competition. It enables businesses and retailers to compete on their merits, not falsehoods.”

Sims also told retailers that consumer guarantees and product safety are key areas of focus for the ACCC in the retail sector.