Tesco and Sainsbury's accused of tobacco price fixing

Supermarkets including Tesco and Sainsbury’s were today among 11 retail chains in the UK accused of anti-competitive pricing practices on tobacco products.

Tobacco giants Imperial Tobacco and Gallaher are also named in the Office of Fair Trading investigation, which comes just a week after the consumer watchdog announced a major inquiry into price-fixing in the construction industry.

The OFT’s tobacco investigation alleges that manufacturers and retailers struck deals to restrict the ability to determine selling prices independently, spanning three years between 2000 and 2003.