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Supermarkets 'fixed dairy prices' | Supermarkets 'fixed dairy prices' |
(10 minutes later) | |
The UK's big four supermarkets and dairies colluded to keep the price of dairy goods artificially high, the Office of Fair Trade (OFT) has found. | |
The price-fixing deal led to consumers overpaying for milk, cheese and butter by an estimated £270m, the OFT said. | |
Asda, Tesco, Morrisons, Sainsbury's and processors including Dairy Crest and Arla were involved, the watchdog said. | |
It added stores and processors had already been warned the practice would limit competition and raise prices. | It added stores and processors had already been warned the practice would limit competition and raise prices. |
"This is a very serious case," said OFT executive director Sean Williams. | |
"This kind of collusion on price is a very serious breach of the law." | |
'Deterrent' | |
Mr Williams added that the watchdog would ensure it used its powers to punish such behaviour and "deter other businesses from taking such actions". | |
It added it had written to Asda, Morrisons, Safeway, Sainsbury's and Tesco, as well as dairy processors Arla, Dairy Crest, Lactalis McLelland, The Cheese Company and Wiseman setting out its findings. | |
It is now awaiting their responses to the claims, and any objections. | |
Following an investigation the OFT said it had found the groups had shared "highly commercially sensitive information, including details of the levels of price increases, over a two year period of 2002 and 2003". | |
The watchdog said it was "committed to sorting out the case as soon as possible," and hoped to issue a final decision by late 2008, if not earlier. |