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OFT fines supermarkets and processors £50m
Published 11 August 11
The Office of Fair Trading (OFT) announced yesterday that it is to impose fines totaling approximately £50m on four supermarkets (Asda, Safeway, Sainsbury's and Tesco) and five milk processors (Arla, Dairy Crest, McLelland, The Cheese Company and Robert Wiseman Dairies) for infringements of the Competition Act. The OFT states the infringements occurred when the supermarkets indirectly exchanged retail pricing intentions via dairy processors. This occurred with regards to cheese in 2002 and 2003 with infringements in liquid milk occurring in 2003 only.
The OFT reported that of the nine companies fined, reductions were given to eight in recognition of their cooperation in the investigation. Arla had it's fine reduced by 100% as it was the first company to alert the OFT of any possible infringement. The other seven had fines reduced by 30-45% with Tesco the only company not given a reduction with its fine totalling approximately £10m.
For more information visit the OFT website: http:/oft.gov.uk/news-and-updates/press2011/89-11