Coles Group Limited - s.87B undertaking

The ACCC’s inquiry report published in July 2008 identified concerns that restrictive provisions in lease agreements in respect of supermarket space could restrict the ability of supermarket operators to establish supermarkets in shopping centres.

The ACCC conducted an industry-wide investigation into whether restrictive provisions in lease agreements could have the purpose and/or effect of substantially lessening competition in a market.  Coles is a party to a number of the lease agreement which was the subject of an ACCC investigation.

In particular, the ACCC is concerned that by including restrictive provisions in lease agreements, supermarket operators may have prevented and/or hindered other supermarket operators from entering and competing in markets for the acquisition of supermarket space and/or in retail grocery markets.

To address the ACCC’s concerns, Coles has provided an Undertaking pursuant to section 87B of the TPA.