SYDNEY, June 24 Reuters Australia could impose billion dollar fines on big supermarket chains that fail to comply with an industry code of conduct, the federal government said on Monday as it seeks to address concerns that suppliers have been unfairly squeezed on pricing.

Grocers with more than A5 billion 3.3 billion in annual revenue currently Woolworths, Coles, Germany39;s ALDI and wholesaler Metcash  will be made to comply with the code of conduct that has until now been voluntary, the federal government said.

The move comes after a report by former competition minister Craig Emerson found the current code was failing to address the imbalance of bargaining power between supermarkets and their suppliers, including farmers, the federal government said.

The supermarkets will face fines of up to 10 of annual turnover for breaches of the code which mainly covers dealings with suppliers. Woolworths reported Australian food sales of A48 billion in 2023, Coles took A37 billion and Metcash had A10 billion. ALDI does not disclose its earnings.

This is about getting a fair go for families and a fair go for farmers, a joint statement by Treasurer Jim Chalmers, agriculture minister Murray Watt and competition minister Andrew Leigh said.

The federal government will prioritise passing laws to make the code mandatory, it said in a separate statement.

The review is one of six government inquiries into the country39;s supermarket sector which commentators say is one of the most…