07 December 2007, 15:55 PM
  • A number of supermarkets and dairy processors will have to pay a total of £116m after they admitted involvement in the milk fixing scandal, the Office of Fair Trading (OFT) revealed today.

This happens less than three months after the OFT released its Statement of Objections (SO), which provisionally found evidence of collusion between a number of large supermarkets and dairy processors on the price of milk, cheese and butter. Companies involved included Sainsbury’s, Tesco, Asda, Morrisons, Safeway, Dairy Crest, Arla, Lactalis McLelland, The Cheese Company and Wiseman.

Today, the OFT stated that all except Tesco, Morrissons and Lactalis McLelland have admitted to anti-competitive practices. The other companies will now pay individual penalties, which combined values amount to £116m. However, it is believed the involved parties will benefit from large reductions if they carry on to fully cooperate with the inquiry. Arla had applied for leniency and will receive complete immunity if it continues to help the OFT in its investigation.

In a statement, the OFT explained it was really pleased with the early and constructive cooperation of certain companies and added, “This has enabled some of this case to be resolved effectively and swiftly, which will significantly reduce the costs of pursuing the investigation to the OFT and to the businesses concerned. This case demonstrated the flexible approach the OFT is prepared to take to reduce the burden of investigations, while maintaining strong and effective competition law enforcement.”

As no deal could be made with Tesco, Morrisons and Lactalis McLelland – all three still dispute the findings - the cases against these companies continue.