Morrisons Cleared of Milk Price Fixing
UK - The announcement that supermarket giant Morrisons has been cleared by the Office of Fair Trading (OFT) of certain allegations over price-fixing must clear the way for the supermarket to put in place a more formal arrangement with producers to source its liquid milk in the future.
24 April 2008
2 minute read
In September 2007 the OFT made allegations of price-fixing against a number of large supermarkets and dairy processors. However, OFT has acknowledged that the press release incorrectly suggested that Morrisons was the subject of a provisional OFT finding of infringement in relation to milk, cheese and butter over a two year period (2002 and 2003), and that Morrisons had previously been warned by the OFT against anti-competitive behaviour.
In fact, the OFT has not made any provisional finding of infringement against Morrisons in relation to the supply of butter and cheese. Nor has Morrisons been accused of any price fixing activity after 2002. The only allegation relating to Morrisons is in regards to liquid milk products in 2002. In addition, the OFT accepts that Morrisons had not received a warning from the OFT.
The OFT has agreed to pay Morrisons £100,000 in settlement of the defamation action with the money believed to be going to charity.
NFU Scotland President, Jim McLaren said:
“Now that the weight of the price fixing allegations has been largely lifted from Morrisons shoulders, they can get on with the pressing job of formalising arrangements with milk producers to secure their supplies of fresh liquid milk in the future.
“Morrisons' major competitors – Tesco, Asda, Sainsbury, Waitrose, Marks & Spencer – have all entered into varying agreements with dairy farmers. Our regular discussions with Morrisons in the past ten days have stressed the need for them to follow suit. Today’s announcement must help that process move forward with the required degree of urgency.”
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