Lactalis McLelland faces an unspecified fine after admitting UK dairy firm A McLelland and Son played a role in the price-fixing of cheese in 2002 and 2003.
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The company struck a deal with the UK’s Office of Fair Trading, which has been investigating allegations of price-fixing in the UK dairy sector.
The probe, first announced in September, focused on alleged collusion between a number of the UK’s largest dairy processors and retailers in 2002 and 2003.
In December, UK retailers Sainsbury’s and Asda and three dairy processors admitted fixing the price of milk, butter and cheese.
The supermarkets, alongside Dairy Crest, The Cheese Company and Robert Wiseman Dairies, agreed to pay fines of up to GBP116m (US$227.6m), following an agreement with the OFT.
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By GlobalDataNo such deal was struck with Lactalis McLelland and the investigation into whether the cheese maker took part in the collusion continued until today’s (15 February) announcement.
The OFT said Lactalis McLelland had admitted A McLelland and Son’s involvement in fixing prices of cheese, which took place before France’s Groupe Lactalis bought the Scottish firm in 2004.
“The investigation against the remaining parties, Morrisons and Tesco, is continuing,” the competition watchdog said. “The OFT will carefully consider these parties’ representations on the provisional findings, and the evidence in the case as a whole before reaching any final decision.”
Morrisons has launched legal action against the OFT for linking it to the affair.
A report in today’s Daily Telegraph said a UK High Court judge had granted Morrisons permission to seek a judicial review into the way the OFT made the allegations public.
Mr Justice Davis criticised the OFT for trying to attract “sensationalist publicity”, the newspaper said.
In December, Morrisons had asked the OFT to publicly clarify the retailer’s position in the ongoing investigation. The OFT then issued a surprise statement on the behest of Morrisons in which it explicitly stated why the retailer remains under suspicion.
The OFT said Morrisons was under suspicion of collusion over certain liquid milk products. The watchdog added that its clarification related only to Morrisons and not to Safeway, which Morrisons bought in 2004.
A spokesperson for the OFT refused to be drawn on the judge’s comments or the legal action from Morrisons. The spokesperson said the OFT’s investigation into whether Morrisons was involved in fixing the price of milk in 2002 was “ongoing”.
