CANBERRA, Nov 27 Reuters The Australian government on Wednesday introduced a bill into parliament that would impose potentially billiondollar fines on big supermarket chains that fail to comply with an industry code of conduct ensuring they do not mistreat suppliers.

The legislation follows accusations from politicians and farmers that the biggest supermarket chains are using their scale to stifle competition, mistreat suppliers and overcharge customers, charges the companies reject.

Large grocers including market leaders Woolworths and Coles along with Germany39;s ALDI and wholesaler Metcash will be made, from April next year, to comply with a code of conduct that has until now been voluntary.

The legislation would impose 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 31 billion in 2023, while Coles had A37 billion and Metcash A10 billion. ALDI does not disclose its earnings.

We39;re cracking down on supermarket misconduct because it will help shoppers at the register, and it will help farmers and suppliers at the negotiating table, Assistant Treasury Minister Andrew Leigh said in a statement.

High inflation has eroded the approval rating of the centreleft Labor government ahead of an election due early next year.

Australia39;s supermarket sector is one of the most concentrated in the world, commentators say. Woolworths and Coles together sell…