Australia’s big supermarkets could face penalties of up to $10m under proposed mandatory code

Report recommends mandatory code apply to all supermarkets with annual revenues exceeding $5bn, which includes Coles, Woolworths and Aldi. Photograph: Sam Mooy/AAP

Australia’s big supermarkets could face hefty fines as part of a federal government plan to make the grocery code of conduct mandatory and give it teeth.

A report ordered by the government – to be released on Monday – warns changes are needed to redress “a heavy imbalance in market power between suppliers and supermarkets in Australia’s heavily concentrated supermarket industry”.