Australian retail giant Woolworths has said it expects any fine levied at its Safeway unit over a misuse of market power case to fall below the maximum fine of A$50m (US$34.0m).
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The Federal Court ruled earlier this week in favour of the Australian Competition and Consumer Commission (ACCC), which had accused Woolworths of one charge relating to price-fixing and four charges relating to misuse of market power in the Victorian bread market. Each charge carries a maximum penalty of $10m.
Woolworths said that its legal advisers were considering an appeal to the High Court, but if that application was unsuccessful, and if fines were subsequently levied at Safeway, Woolworths “is aware of no basis to expect that penalties at the maximum level of A$50m will be imposed,” reported Reuters.
The ACCC had alleged that Safeway used its market power to persuade bread makers to stop some bakeries from discounting the price of bread.
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