The Office of Fair Trading has today announced that it is reducing the fines for a number of parties involved in its dairy investigation who entered into early resolution agreements in 2007 and 2008.
Following detailed representations and new evidence that has come to light, the OFT has decided that the evidence it has on file is insufficient to support an infringement finding as regards liquid milk in 2002 and value butter in 2003. The total penalties that the early resolution parties had agreed to pay was around £120 million, but following today's announcement each party will receive a penalty reduction provided that it continues to co-operate with the OFT. The total penalties now payable by these parties are in aggregate approximately £70 million.
As the only allegation against Morrisons related to liquid milk, Morrisons is no longer a party to the investigation.
The OFT has also announced that it has decided to drop certain allegations against Tesco. The allegations that are no longer being considered are in relation to liquid milk in 2002 and 2003 and value butter in 2003. In addition the OFT has agreed to a 10% discretionary penalty discount in recognition of Tesco notifying the OFT that it does not intend to contest provisional findings of a breach of competition law in relation to certain cheese lines in 2002 and 2003.
The OFT expects to conclude the matter and issue its decision in the dairy investigation in early summer 2010.
Copies of the press releases can be found here and here .
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The original publication date for this article was 30/04/2010.
