Wesfarmers Limited
(ASX:WES) supermarket division Coles will be forced to pay $10 million in penalties and $1.2 million in legal costs to Australia’s competition watchdog.
The order comes after the Federal Court decided to uphold an Australian Competition and Consumer Commission (ACCC) settlement.
The ACCC has advised the court found Coles engaged in unconscionable conduct in its dealings with certain suppliers in 2011.
Federal Court judge Michelle Gordon says Coles threatened harm to the suppliers that did not comply with its demand and unfairly withheld money from suppliers.
Justice Gordon described the misconduct as serious, deliberate and repeated with deliberate, orchestrated and relentless practices, demands and threats.
Wesfarmers reported a net profit of $2.68 billion in the full 2014 financial year.
