Tesco squares up to competition watchdog after price-fix fine
10 August 2011 10:09
Supermarket giant Tesco has threatened legal action against the competition watchdog after it was slapped with a £10 million fine for its role in a dairy price-fixing scandal.
The company said it reacted with "surprise and dismay" over the decision by the Office of Fair Trading (OFT) to include it in penalties totalling nearly £50 million.
In a statement, Tesco promised to defend its position "vigorously" and "through the courts if necessary".
The supermarket was among nine firms that the watchdog judged to have colluded to rig the price of cheese and milk in 2002 and 2003.
The scandal is thought to have cost consumers around £270 million. The OFT had initially intended to fine the guilty parties more that £116 million, but scaled back the penalties after a period of consultation.
Supermarket chains Asda, Sainsbury's and Safeway and dairy processors Arla, Dairy Crest, McLelland, The Cheese Company and Wiseman all received lenient fines after admitting liability.
Tesco stands alone in denying that it colluded with the others to inflate the price of milk and cheese.
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