Wesfarmers (ASX:WES) share price up as Catch involved in ACCC inquiry

The ACCC mentioned the Wesfarmers' subsidiary as an example of a body it will be investigating as part of its latest inquiry

The Wesfarmers Ltd (ASX: WES) share price is gaining today, despite the Australian Competition and Consumer Commission (ACCC) naming its subsidiary Catch.com.au as a focus in its latest inquiry.

Catch.com.au was part of Catch Group, which was acquired by Wesfarmers in 2019 and is now a part of Wesfarmers' Kmart Group.

The ACCC's inquiry is looking into digital services platforms in Australia. It's seeking submissions from consumers, platforms, and third-party sellers.

Right now, the Wesfarmers share price is $61.35 – 0.11% higher than its previous closing price.

While that's a good day's performance, it's not as good as that of the broader market. The All Ordinaries Index (ASX: XAO) has gained 0.92% today, while the S&P/ASX 200 Index (ASX: XJO) is 0.95% higher.

Let's take a closer look at today's news regarding Catch.com.au.

Online shopper opens box containing television

Image source: Getty Images

ACCC turns focus to online marketplaces

The Wesfarmers share price hasn't noticeably been affected by the ACCC's announcement of its latest inquiry.  

As part of the inquiry, the ACCC will be looking at online marketplaces' relationships with third-party sellers and consumers, as well as how they affect market competition in Australia.

According to Catch.com.au, it's one of Australia's largest online shopping platforms, attracting 30,000 new customers each week and sending 20,000 orders each day.

The inquiry is the fourth the ACCC's Digital Platforms Branch is undergoing as part of a 5-year inquiry into the supply of digital platform services in Australia. It will result in a report that will be given to the Australian Treasurer in March 2022.

Wesfarmers' isn't the only ASX-listed entity to have been named as part of the ACCC's inquiry.

Kogan.com Ltd (ASX: KGN) was also a noted platform in the inquiry. Unlike Wesfarmers, which got off relatively unscathed, the Kogan share price has fallen 2.94% today.

Wesfarmers share price snapshot

The Wesfarmers share price has been performing well on the ASX lately.

It has gained 19% since the start of 2021. It has also increased by 33% since this time last year.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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