ACCC cautious about Woolies plan

The head of Australia's competition watchdog has admitted it may be tough to prove that supermarket giant Woolworths is abusing its market dominance by stocking more home-brand products.

But trade unions and at least one federal politician want action taken against the retailer.

Woolworths says it intends to double its Home Brand range and negotiate better deals with suppliers in fresh and packaged groceries.

The manufacturing union CFMEU has warned the plan will price local suppliers out of the market and constrain choice for consumers, driving jobs offshore.

The ACCC chairman Rod Simms says he will examine the plan, but admits any case against Woolworths might be hard to prosecute.

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