LONDON (Thomson Financial) - The UK's Office of Fair Trading has issued a provisional decision over price-fixing related to dairy products, which it said had led to an estimated cost to consumers of around 270 mln stg.
The OFT's provisional finding is that certain supermarkets and dairy processors engaged in fixing the retail prices for milk, butter and cheese by sharing commercially sensitive information over a two year period in 2002 and 2003.
The regulatory authority said price fixing was harmful to consumers by restricting the competitive process, leading to higher prices.
Sean Williams, OFT executive director, said: 'This kind of collusion on price is a very serious breach of the law. Businesses should understand that where we find evidence of this kind of anti-competitive activity we will use the powers at our disposal to punish the companies involved and to deter other businesses from taking such actions.'
The OFT added that it will not be in a position to decide if the law has been breached until it has received and reviewed the parties' responses to the statement of objections and any comments from interested third parties. TFN.newsdesk@thomson.com ukn/cm2 COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.