Dominic Tobin
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The headquarters of Britain’s biggest four supermarkets have been raided by the consumer watchdog as part of an investigation into price-fixing.
Tesco, Sainsbury’s, Asda and Morrisons are among those suspected of colluding to fix the prices of groceries and health and beauty products, in what is believed to be the biggest inquiry in the history of the Office of Fair Trading (OFT).
Almost 100 investigators and lawyers are understood to have seized hundreds of e-mails between the retailers and their suppliers during the surprise raids on Thursday.
Firms found guilty of price collusion can expect punitive fines under the Competition Act, equivalent to 10% of the sales turnover of the product involved.
News of the raids comes two days after the OFT announced it was looking into allegations of collusion over the price of cigarettes.
The major four supermarkets are among 11 retailers caught in the cigarettes inquiry, which is said to involve Imperial Tobacco, maker of brands such as Embassy, and Gallaher, which owns Silk Cut.
The watchdog had already been investigating price-fixing claims against Morrisons and Tesco regarding milk, butter and cheese. Sainsbury’s, Asda and several dairy firms had already admitted collusion and been fined.
Last week the OFT was forced to pay Morrisons £100,000 for naming it as one of the firms under investigation before publication of the official report.
A spokesman for Tesco said last night: “We are surprised by these allegations of collusion. Tesco’s record on achieving the lowest prices for customers in a ferociously competitive market is clear.”
The OFT declined to comment. It has recently been criticised by business leaders for conducting investigations of the construction, banking and retail industries in the public spotlight. This week the Competition Commission will publish the results of a two-year review of the groceries market.
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We blame the governments for taking our rights, getting us into wars, stupid eco-nonsense that is now driving our food prices up then turn around and say that same government isnt taking enough action. As is becoming the norm in the USA, its easier to blame a company and a corporation.
William Carson, Atlanta, USA
More examples of rip off Britain. we have known for a long time that there has been price fixing, supermarkets think that the British shopper is a mug. If you look at the profits made in Europe by the supermarkets there, they are 1/3 of what they are here, there they have true competition.
Jim, Aberdeen,
This has been happening under the banner of Price Check. This makes sure that one supermarket is matching its competitor on prices. In theory, it keeps prices low for the consumer. It also ensures that prices are not lower than they need be. Price fixing!
Michael, London,
These companies are deeply ant-competitive at heart. Tesco obviously wants to be The High Street.
Supermarkets should only be permitted to sell groceries and not allowed to muscle in on anything else. They should not be permiited to open on Sundays and there should also be a maximum store size.
Rich, Cambridge, UK
Supermarkets have been fixing prices for years. Check out hair care, razor blade prices. Major supermarkets & Boots (via price matching) have been forced by the retailers to ensure that the consumer price on their shelves are not lower at other supermarkets. I am an Ex General Manager Wella GB
Paul Clegg, Frome, United Kingdom
If found guilty of price fixing will "real" punitive penalities be implosed on these giants. Or made to reduce the number of stores each would be allowed, as happenedto the brewing industry.
Keith Stanley, Leeds
Keith Stanley, Leeds, West Yorks
The OFT did not get fined nearly enough for slagging off Morrisons, and Tesco now looks upon itself as the Fifth Estate
terry, L'Absie, France
Exactly so Felix. It's all government prompted greandstanding to make voters think that The Tartan Tax Collector is looking after their interests. I'd rather see Britain run by the supermarkets than the idiots that are doing it now.
James, Isle of Man,
With the profits made by these super stores it seems likely there is a master plan of sorts, collusion is likely but whether or not this is criminal, who can tell?
Mike O Connor, plymouth,
We shouldn't jump to conclusions but there's usually no smoke without fire. The government has been soft on supermarket for too long. Their distribution model is becoming unsustainable and power over our tastes and pockets equal to many governments.
Ray Cobbett, Emsworth, Hants,
I'd rather have prices fixed by businesses than by interference from the OFT. Why should those who wouldn't freely choose to compete be forced to compete? It just amounts to a diktat to lower prices. How can this be healthy? True monopolies aren't stable, anyway, unless enshrined in law.
_Felix, Nottingham,