UK retailers are this morning (20 September) facing claims that they colluded with dairy companies to hike up the price of milk, butter and cheese.
Go deeper with GlobalData
The UK’s Office of Fair Trading said collusion between the likes of Tesco, Asda, Dairy Crest and Arla Foods over a two-year period cost consumers some GBP270m (US$541.7m).
The OFT has claimed that retailers and dairy processors fixed the retail prices of milk, butter and cheese in 2002 and 2003. The OFT also named retailers Morrisons, Safeway and Sainsbury’s, as well as dairy groups Lactalis McLelland, The Cheese Company and Robert Wiseman in its findings.
“This is a very serious case,” said OFT executive director Sean Williams. “believe supermarkets have been colluding to put up the price of dairy products. Consumers have lost out to the tune of hundreds of millions of pounds.”
The OFT will not issue a definitive verdict on whether UK competition law has been breached until it has received responses from the retailers and dairy firms concerned.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataWilliams added: “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.”
