UK retailers Sainsbury’s and Asda and three of the country’s largest dairy processors have admitted fixing the price of milk, butter and cheese.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The supermarkets, alongside Dairy Crest, The Cheese Company and Robert Wiseman Dairies, have agreed to pay fines that could reach a combined GBP116m (US$235.2m), following an agreement with the UK’s competition watchdog.
The Office of Fair Trading said this morning (7 December) that the five companies had “admitted involvement in anti-competitive practices”.
Safeway also admitted being involved before it was bought by Morrisons. However, the investigation will continue against Morrisons, Tesco and dairy firm Lactalis McLelland after no deals were struck.
The OFT said dairy giant Arla Foods will receive “complete immunity from financial penalty” if it continues to co-operate with the watchdog.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn September, the OFT said it had found evidence of collusion between UK retailers and dairy groups to fix the price of milk, butter and cheese in 2002 and 2003. The OFT estimated that the arrangements had cost UK consumers around GBP270m.
The OFT said it was “very pleased” with the “early and constructive cooperation” of some of those accused.
“This case demonstrates the flexible approach the OFT is prepared to take to reduce the burden of investigations, while maintaining strong and effective competition law enforcement,” the watchdog said.
“The OFT will continue with its case against Lactalis McLelland, Morrisons and Tesco.”
