Australia to make supermarket industry code mandatory

SYDNEY, June 24 (Reuters): Australia could impose billion dollar fines on big supermarket chains that fail to comply with an industry code of conduct, the federal government said on Monday as it seeks to address concerns that suppliers have been unfairly squeezed on pricing.

Grocers with more than A$5 billion ($3.3 billion) in annual revenue - currently Woolworths, Coles, Germany's ALDI and wholesaler Metcash - will be made to comply with the code of conduct that has until now been voluntary, the federal government said.

The move comes after a report by former competition minister Craig Emerson found the current code was "failing to address the imbalance of bargaining power between supermarkets and their suppliers, including farmers", the federal government said.