Tesco threatens legal action against OFT
11 Aug 2011
UK supermarket giant Tesco has threatened to take legal action against the competition watchdog after it was slapped with a £10-million fine for its role in a dairy price-fixing scandal.
According to the company, it reacted with ''surprise and dismay'' over the Office of Fair Trading's (OFT) decision to include it in penalties totalling nearly £50 million.
Tesco said in a statement that it would defend its position ''vigorously'' and ''through the courts if necessary''.
The watchdog found the supermarket among nine firms that allegedly colluded to rig the price of cheese and milk in 2002 and 2003.
It is estimated the consumers took a hit of £270 million from the collusion. Initially, the watchdog had intended to fine the guilty parties over £116 million, but reduced 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 were let off with lenient fines after they admitted liability.
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