Supermarkets fined £116m for dairy price fixing

Supermarket giant J Sainsbury has agreed to pay £26m to the Office of Fair Trading to settle a long-running investigation into the price fixing of milk, cheese and butter.

The OFT concluded in September that supermarkets including Sainsbury's, Tesco and Asda has colluded to fix the prices of milk and cheese, costing shoppers an estimated £270m.

In a short statement today, the OFT said it had concluded settlements with Asda, Dairy Crest, Safeway, Sainsbury’s, The Cheese Company and Wiseman.

Morrisons and Tesco, the UK's biggest supermarket, are refusing to admit that they exchanged sensitive information regarding milk, cheese and butter prices in 2002 and 2003. Producer Lactalis McLelland has also refused to admit guilt. The case against those companies will continue...….

Arla had previously applied to the OFT for leniency and will receive complete immunity from financial penalty if it continues to fully co-operate.

The OFT will continue with its case against Lactalis McLelland, Morrisons and Tesco. These parties have an opportunity to make representations on the OFT's provisional findings. The OFT will carefully consider any representations, and the evidence in the case as a whole before reaching any final decision..….