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Woolworths (WOWAU 28s; Baa2/BBB) Regulator alleges misleading pricing

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The ACCC (competition regulator) haslaunchedproceedings against the duopoly grocers in Australia; Woolworths (37% market share) and Coles (28%). This is separate to a investigation into supplier relations - the overhanging risk we have flagged in the past with potential margin impact - whose results are also expected soon.


Both sides of the political spectrum have jumped on the allegations - media & political scrutiny during inflation has been a driver of the focus. WOW equities closed -3.4% - somewhat muted but fines could get ugly here at the higher of $50m/breach or 3x benefit obtained (court determined) or if former cannot be determined 30% of corporate turnover during the breach period. For reference the regulator alleges misleading pricing on 266 products between Sept '21 to May '23 for Woolworths. Annual turnover for the co is €42b.

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The ACCC (competition regulator) haslaunchedproceedings against the duopoly grocers in Australia; Woolworths (37% market share) and Coles (28%). This is separate to a investigation into supplier relations - the overhanging risk we have flagged in the past with potential margin impact - whose results are also expected soon.


Both sides of the political spectrum have jumped on the allegations - media & political scrutiny during inflation has been a driver of the focus. WOW equities closed -3.4% - somewhat muted but fines could get ugly here at the higher of $50m/breach or 3x benefit obtained (court determined) or if former cannot be determined 30% of corporate turnover during the breach period. For reference the regulator alleges misleading pricing on 266 products between Sept '21 to May '23 for Woolworths. Annual turnover for the co is €42b.

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