The UK OFT uncovers an alleged collusive agreement between large supermarkets and dairy processors to fix milk and milk products prices ("Supermarkets and dairies price fixing")

Summary The OFT has uncovered an alleged collusive agreement between large supermarkets and dairy processors to fix the prices of milk, butter and cheese. The OFT has estimated the price fixing cost consumers £270 million. The horizontal and vertical nature of the alleged collusion suggests a complex nature to the agreement. If proven, the parties face a massive fine. Background The OFT announced on 20 September 2007 that it had provisionally found that large supermarkets and dairy processors had colluded to increase the prices of dairy products [1]. The firms involved were the supermarkets Asda, Morrisons, Safeway, Sainsbury and Tesco and the dairy processors Arla, Dairy Crest, Lactalis McLelland, The Cheese Company and Wiseman. The OFT has estimated the price fixing cost consumers