Grocers win price war against supermarkets

Australia's small retailers have scored a victory in their battle to stop predatory pricing by major supermarkets.

The Australian government has agreed to increase fines imposed for anti-competitive behaviour, following pressure from the Australian Competition and Consumer Commission. The fine, formerly Aus$3 million (£1.1 million), will now be Aus$10 million (£3.8 million) or 10 per cent of company turnover, whichever is larger.

Other changes to the country's Trade Practices Act will also make it easier for the courts to find large retailers guilty of using their purchasing power unfairly, and allow small businesses to act collectively when negotiating tenancies and purchasing deals.