UK: Tesco wins partial victory in OFT price-fixing case
By Michelle Russell | 21 December 2012
 |
Tesco said it was “pleased” with the judgement |
UK retail giant Tesco has won a partial victory in a long-running Office of Fair Trading investigation into dairy price-fixing.
The supermarket was fined GBP10m (US$16.1m) last year for alleged price-fixing in the cheese market with suppliers and rival retailers in 2002 and 2003. It resulted in an OFT investigation that began in 2004.
A total of GBP49.5m in fines were imposed in 2011 after the OFT found four retailers had indirectly informed each other of what prices they would levy on dairy products through the manufacturers. Some retailers, including Asda and Sainsbury's, admitted fixing prices but Tesco has maintained its innocence throughout the investigation.
In a statement this week, the Competition Appeal Tribunal rejected more than half of the OFT's findings. It said there was "insufficient evidence to support a number of the conclusions reached by the OFT" and that "none of the five strands, as found in the decision, were proved as against Tesco".
It did say Tesco was guilty of communicating its future retail pricing intentions to rival retailers via processors McLelland and Dairy Crest three times in 2002.
The Tribunal said it will now seek further argument on that aspect and the level of fine.
The OFT said it welcomed today's tribunal findings that Tesco "infringed competition law in relation to certain anti-competitive exchanges of its pricing intentions" and that it will "consider the judgment in detail, including the next steps".
Tesco said it was "pleased" with the judgement and that it has "always maintained it was not part of an overall plan to collude on prices".
"The OFT's case focused on events which took place a decade ago. It is common ground that the industry faced unprecedented public pressure to increase the price received by farmers for their milk. We have noted the CAT's findings about three isolated communications in 2002. We have of course updated our compliance practices since that date," a spokesperson for Tesco said. "All the other allegations against us in this ten year process have already been dropped."
Companies: Tesco, Asda, Sainsbury’s, Dairy Crest
View next/previous articles
21 Dec 2012 -
Currently reading -
UK: Tesco wins partial victory in OFT price-fixing case
21 Dec 2012 -
Related research
Asda Stores Limited (Foodservice): Foodservice - Company Profile & SWOT Report
Canadean's "Asda Stores Limited (Foodservice): Foodservice - Company Profile & SWOT Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts, major products and services, ...
Tesco Corporation - SWOT, Strategy and Corporate Finance Report
Tesco Corporation - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, and c...
Tesco PLC (TSCO) - Financial and Strategic SWOT Analysis Review
Tesco Plc (Tesco) is an in-store and online retailer. The company undertakes operations of 4,811 multi-format stores including stores which are classified into six formats, differentiated by size and the range of products sold, they are, Homeplus, Su...
Related articles
Comment: Pragmatic deal for Morrisons, Waitrose risk for Ocado
A deal with Ocado represents Morrisons best route into the UK online channel as it plays catch-up with rivals. For the online specialist, it looks a good deal, although it could threaten its agreement with another partner, Waitrose.
Editor's choice: the highlights on just-food this week
After UK organic baby food firm Ella's Kitchen was snapped up by a US buyer a fortnight ago, this week a peer across the pond revealed it agreed to sell to Danone, representing the Aptamil and Cow & Gate owner's move into the category.
Quote, unquote: just-food's week in words
The week ended on a high note for Morrisons this week after it announced a venture to launch into the online channel with Ocado. The deal has again fuelled speculation that the deal could upset Ocado's current arrangement with Waitrose. Other deals this week included the acquisition of US baby food firm Happy Family by Danone. just-food also spoke with founder of Amy's Kitchen, Amy Berliner about its growth plans.
There are currently no comments on this article
Be the first to comment on this article