UK tobacco manufacturers and retailers fined £225m

The UK competition watchdog today hit 10 retailers and two tobacco manufacturers with fines totalling £225m (€255.9m) for "unlawful practices" in pricing of cigarettes, cigars and rolling tobacco.

The fine - the largest total ever imposed by the Office of Fair Trading (OFT) - came after Imperial Tobacco and Gallaher struck 'price matching' arrangements with retailers in which the prices of their tobacco products were linked to those made by rivals.