Bunnings And Amazon Under Senate Probe Over Supplier Treatment, Market Dominance

Amazon and Bunnings are facing a Senate inquiry over their supplier treatment and competitive impact amid rising living costs and accusations of unfair business practices.

The Senate inquiry will bring Bunnings' business operations under the radar as it is facing scrutiny over the expansion of its grocery section, which raised the question of whether it is consistent with the industry code of conduct.

The inquiry will particularly try and ascertain whether the businesses are squeezing the suppliers unfairly and whether these retailers are engaging in anti-competitive behaviors, Nine News reported.

The parliamentary investigation was launched, following a similar inquiry into major supermarkets earlier this year, with the goal to ensure fair competition and a stable market.

The federal government had announced a code of conduct for how supermarkets have to treat suppliers, the breach of which would cost them up to AU$10 million.

According to AAP, Bunnings will have to justify to the senate inquiry why it should not be part of the industry's code of conduct, as senator Ross Cadell pushes to prevent large retailers from pressuring suppliers.

Bunnings has stressed it should not be part of the code of conduct, as it sells a variety of non-grocery items. However, it has increasingly started selling more grocery items.

"This inquiry will investigate and recommend the powers needed to clean this industry up, improve competition, and create a fairer, more transparent marketplace for our primary producers and suppliers," he said.

"We're looking anti-competition, at pressure and influence on suppliers and treatment of smaller guys," Cadell told AAP. "They sent some PR spinners to the inquiry instead of people with answers, so we want to see where that leads."

Bunnings said it will cooperate fully with the competition.

"Including to provide insight into our focus on delivering value to customers through lowest prices," a Bunnings spokesperson told AAP in a statement.

"We have deep connections with communities through our many local partnerships and initiatives and our employment of more than 50,000 people across Australia."

Cadell has also urged Amazon and Chemist Warehouse to appear before the inquiry.

To assist small firms and adapt to the shifting economic landscape, the Australian government is also revising its competition policy, AAP reported.