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OFT Statement of Objections against supermarkets and dairies - clarification

175/07    13 December 2007

On 20 September 2007, the OFT issued a Statement of Objections (SO) setting out the OFT's provisional findings that certain large supermarkets and dairy processors had colluded to increase the retail prices of one or more of liquid milk, value butter and UK produced cheese in 2002. The OFT's provisional findings are that the collusion took place through the sharing of commercially sensitive information in 2002 and, in some cases, in 2003.

See also press release 170/07 which provides further details on the OFT's provisional findings and the early resolution agreements announced on 7 December.

So far as the provisional findings against Morrisons are concerned, the OFT wishes to give the following clarification:

• in the SO the OFT's provisional findings are that Morrisons colluded in respect of certain liquid milk products in 2002 only. Morrisons is not the subject of any further infringement allegations in the SO in respect of any other dairy products or any other years, and
• the OFT's provisional findings do not allege that Morrisons had been warned by the OFT that its conduct might be anti-competitive.

The OFT regrets any confusion that may have arisen in respect of these matters.

Morrisons, and the other parties, have an opportunity to make representations on the OFT's provisional findings. The OFT will not be in a position to decide if the law has been breached by Morrisons, or any of the other parties against whom its investigations are continuing, until it has received and reviewed Morrisons', and the other parties' responses to the provisional findings set out in the SO. The OFT will carefully consider any representations made by Morrisons, and the other parties, and the evidence as a whole before reaching any final decision in this case.

This clarification relates only to Morrisons and excludes Morrisons' Safeway subsidiaries, which are treated as a separate party in this investigation. The provisional findings in relation to Safeway concerns conduct which took place prior to its acquisition by Morrisons.

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