Breaking Up Aussie Market Power: Proposed Reforms Target Supermarkets, Airlines, and Toll Roads

• Supermarkets like Coles and Woolworths have market power to pad profits and amplify inflation, but the main issue is their monopsony power to push down supplier prices. The proposed conduct code may help.

• Divestiture could be considered for liquor businesses and loyalty programs owned by supermarkets.

• Qantas dominates the "golden triangle" flight routes owning over 60% share itself plus subsidiary Jetstar. Forced divestiture of Jetstar could immediately increase competition.

• Transurban owns most privatized Aussie toll roads. Breakup into separate state businesses could be a first step before taking roads back into public hands.

• Privatization and light regulation have reduced competition; policy tools like conduct measures, divestiture and public ownership may help reverse this.