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Big retailers 'bullying' online stores

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Monday, 5 September 2011

BY ELI GREENBLAT
Well-known bricks and mortar stores have pressured distributors and wholesalers to stop selling particular items online that the retailers also sell in their shops, Ebay claims in an inquiry into the Australian retail industry.
The allegation comes as the Productivity Commission continues to hear evidence from retailers and peak-body groups into the competitive pressures facing traditional retailers amid the growing popularity of online sites such as Amazon and Ebay.

In its latest submission to the inquiry, the popular online retailer also backed calls for the Australian Competition and Consumer Commission to investigate these restrictive distribution practices.

Responding to draft recommendations issued by the Productivity Commission last month, Ebay managing director (Australia and New Zealand) Deborah Sharkey alleged today that certain unnamed Australian retailers had engaged in anti-competitive behaviour to limit the availability of products at online sites.

"Ebay is also aware of situations where local distributors and sellers have had pressure applied by prominent Australian retailers to cease selling products on online sites such as ebay.com.au, in competition to the retailer's own channels," Ms Sharkey said in her submission.

"The highly concentrated Australian retail environment means such behaviour can create considerable pressure on distributors and sellers, who have limited other retail distribution channels locally."

Ebay has not named which local retailers had engaged in this alleged behaviour.

"Ebay is pleased that the commission has referred concerns relating to restrictive distribution practices to the ACCC and considers that there is merit in more in-depth study by the ACCC into the effect on consumer choice and online retailing of restrictive distribution practices by some traditional retailers, manufacturers and suppliers."

Ms Sharkey said for consumers, the barriers created by such restrictive distribution practices, combined with the delay or reluctance of traditional domestic retailers to launch online sales channels, resulted in a limited domestic product range and supply.

"This frustrates their capacity to support Australian retailers and drives their spending offshore where product range is superior, and online shopping is more advanced and consumer-friendly.

"It appears that restrictive distribution practices may be a significant barrier to competition, to growing e-commerce in Australia and to modernising the Australian retail industry in line with other advanced countries.

"This warrants further attention by the ACCC and eBay considers it important that the results of the ACCC's investigation be factored into any proposed policy reform.''

Monday, 5 September 2011

The Canberra Týmes
   World

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