Watchdog blocks Coles supermarket in Kalgoorlie using new powers

Australia's competition regulator has flexed its new powers, blocking the opening of a Coles supermarket in the Western Australian city of Kalgoorlie. The Australian Competition and Consumer Commission (ACCC) ruled that the proposed supermarket, which would have included a Liquorland, could substantially lessen competition in the region.

Coles had sought to open a second store in Kalgoorlie, a city already served by one Coles, a Woolworths, two franchised IGAs, and two independent grocers. The ACCC's decision comes after a six-month assessment of Coles' acquisition of a site near the city's airport, utilizing newly granted notification and assessment powers designed to monitor supermarket competition.

"The ACCC is satisfied that the acquisition, if put into effect, would, in all the circumstances, be likely to have the effect, of substantially lessening competition in a market," the watchdog announced. This unprecedented intervention underscores the ACCC's commitment to preventing market dominance by major supermarket chains and protecting smaller competitors.

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The ACCC is satisfied that the acquisition, if put into effect, would, in all the circumstances, be likely to have the effect, of substantially lessening competition in a market.