Why it matters: Some of Australia’s biggest companies including Qantas and the Commonwealth Bank generated record profits in 2022-23
Former ACCC chairman Rod Sims, who headed the competition regulator for 11 years, says some big players took advantage of the sharp inflationary spike.
Mr Sims says Australian industry is too concentrated in many segments, with dominant players able to ram through high price increases.
A former boss of Australia’s competition regulator says big ASX-listed companies with too much market power have “taken advantage” of the sharp rise in inflation to aggressively lift prices which has led to a supercharging of profits.
Rod Sims, chairman of the Australian Competition and Consumer Commission from 2011 to 2022, said many Australian industries, including supermarkets and aviation, were too concentrated and that had shown up in large increases in profits and margins as inflation climbed.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
