Tesco will pay a fine of GBP6.5m (US$9.8m) to settle an Office of Fair Trading investigation into whether UK supermarkets and dairies collaborated to fix milk prices.

Tesco had originally been fined GBP10.4m in 2011 as part of the price-fixing probe in dairy products. However, the retailer appealed the OTF's findings and, in December, the Competition Appeal Tribunal found Tesco guilty of three of the eight charges brought against it.

Commenting on the news, a spokesperson for Tesco said that it was "pleased" to have settled the dairy competition appeal.

"Tesco will pay a reduced penalty... in respect of three infringements of competition law that took place in 2002. The other findings of the OFT against Tesco have been dismissed," the spokesperson emphasised.

In total, the OFT fined eight retailers and dairies a total of more than GBP50m.