Saturday July 12, 01:57 AM
Firms fined for tobacco price-fixing: British watchdog
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LONDON (AFP) - Six (Stockholm: ECOV-B.ST - news) retailers and tobacco firms have agreed to pay combined fines of more than 130 million pounds after admitting "unlawful practices" relating to retail tobacco prices, the Office of Fair Trading said.
Retailers Asda, Somerfield, First Quench, One Stop Stores (formerly T and S Stores) and TM Retail plus manufacturer Gallaher (LSE: GLH.L - news) agreed to pay 132.3 million pounds (165 million euros, 263 million dollars).
The fines come after the competition watchdog accused 12 firms of price-fixing, by either co-ordinating to link the price of some brands to rival products or exchanging proposed future retail prices between competitors.
An investigation into the six other firms named by the OFT three months ago -- the Co-operative Group, Imperial Tobacco (LSE: IMT.L - news) , Morrisons, Safeway (NYSE: SWY - news) , Shell (LSE: RDSB.L - news) and Tesco (LSE: TSCO.L - news) -- is continuing.
OFT chief executive John Fingleton said in a statement Friday evening that companies should set their prices independently, to ensure the markets work well for consumers and the economy.
"The OFT is very pleased that the early co-operation of these parties has enabled the swift resolution of some of this case, which will significantly reduce the costs of pursuing the investigation for the OFT and the businesses concerned," he added.
The OFT investigation covered the period 2000-3. The companies which came to "early resolution agreements" led to a reduction in their fines, the watchdog said.
Even so, the Financial Times said Saturday the sum was still the biggest collective penalty the OFT had handed down.
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