The Australian government is considering imposing billion-dollar fines on major supermarket chains like Woolworths, Coles, ALDI, and Metcash.

The fines aim to enforce a new mandatory industry code of conduct addressing unfair pricing practices towards suppliers.

The code will apply to grocers with over A$5 billion in annual revenue and recommends fines of up to 10% of annual turnover for breaches.

The focus of the code is on ensuring fair dealings with suppliers, aiming to create a fair market for families, farmers, and suppliers.

The National Farmers Federation supports the measures as they aim to protect farmers from the potential misuse of market power by large customers.

Additionally, the government is conducting a separate inquiry into consumer pricing with a report expected in February 2025.

These efforts are part of broader reforms to ensure fair pricing and a competitive market sector for consumers.