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April 25, 2008

UK: OFT rejigs milk probe after Morrisons fiasco

The UK’s Office of Fair Trading has reshuffled its investigation into price fixing in the dairy market after its humiliating apology to Morrisons.

The UK’s Office of Fair Trading has reshuffled its investigation into price-fixing in the dairy market after its humiliating apology to Morrisons.

Earlier this week (24 April), the OFT was forced to settle out of court after admitting it made false accusations against Morrisons in last year’s dairy price-fixing investigation.

The competition watchdog issued a full apology and paid Morrisons some GBP100,000 (US$199,000) to settle a defamation case brought by the supermarket chain.

“The milk cartel inquiry will now be reporting directly to our chief executive John Fingleton,” a spokesperson for the competition watchdog told just-food.

Morrisons, among others, is still facing an investigation over the supply of liquid milk products in 2002.

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