Vic: Safeway ruling serves as warning to others

AAP General News (Australia)
02-01-2006
Vic: Safeway ruling serves as warning to others

MELBOURNE, Feb 1 AAP - An $8.9 million fine imposed on supermarket giant Safeway for
retail misbehaviour would serve as a warning to others, Treasurer Peter Costello said
today.

Mr Costello said the fine, imposed by the Federal Court yesterday after the chain was
prosecuted for price-fixing and misusing its market power, was a win for consumers.

He said it would keep prices down by ensuring market competition.

"This illustrates that business, whether you're small or big ... cannot abuse its power
in the market to damage competition," Mr Costello told ABC Radio.

"If you have power in the market under Australian law you cannot set out to injure
your competitors.

"Safeway was found by the Federal Court to have done that - the biggest fine I believe
in trade practices history, possibly in corporate history ... if anybody thinks that the
law doesn't have teeth go and read this case.

"The (Australian Competition and Consumer Commission) ACCC is well funded to prosecute
abuse of market power and this is a classic case where it took on a big business and succeeded."

Safeway is part of the Woolworths group. In some stores it had ceased taking bread
from various manufacturers while the particular brand was being discounted by competitors.

AAP cmb/gfr/cjh/de

KEYWORD: SAFEWAY COSTELLO

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