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SAINSBURY & ASDA ADMIT PRICE FIXING

Posted on Friday, December 07, 2007

Sainsbury’s and Asda have admitted fixing the price of milk and cheese following an inquiry by the Office of Fair Trading (OFT).

The supermarkets, along with dairy firms, have agreed to pay fines totalling at least £116m. Cases against Tesco and Morrisons  continue.

The OFT said its evidence found that while dairy product prices went up after the collusion, the amount received by farmers did not increase. The firms claimed the farm gate price paid for milk did go up.

In September, the OFT provisionally found evidence of collusion by 10 firms relating to price-setting in 2002 and 2003. Now Sainsbury’s and Asda have admitted price-fixing of milk and cheese, as has Safeway - before it was bought by Morrisons.

Safeway has also admitted colluding on the price of butter. Dairy FIRMS Dairy Crest, the Cheese Company and Wiseman also reached agreement with the watchdog.

Another dairy firm, Arla, has been given immunity from fines if it continues to co-operate with the investigation. Tesco, Morrisons and the dairy firm Lactalis McLelland are challenging the OFT findings.