UK milk price-fixing probe dropped

A two-year investigation into six dairies accused of fixing the price of milk delivered to schools and hotels was dropped in the UK today.

The British Office of Fair Trading (OFT) said it had insufficient evidence to prove the dairies, all in Scotland, had broken competition laws.

Launching the inquiry in September 2006, the OFT said provisional findings showed the firms shared price information, coordinated a series of price increases between them and colluded over plans not to compete for each other’s customers.

The OFT closed the case today, saying: “Although the evidence at the time was sufficient for the OFT to make a provisional finding of an infringement, as a result of continuing investigation the OFT no longer considers that it has sufficient evidence to proceed.”

It added that “continuing the investigation would not be an appropriate use of its resources”.

The allegations, which covered a four-year period between 2000 and 2003, related to the “middle ground” market in Scotland, which consists of customers such as schools, shops, cafes and hotels but excludes major supermarkets and doorstep customers.