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| Version 1 | Version 2 |
|---|---|
| OFT in new supermarket crackdown | OFT in new supermarket crackdown |
| (40 minutes later) | |
| The Office of Fair Trading (OFT) has visited the head offices of Asda and Morrisons as part of an investigation into price fixing. | The Office of Fair Trading (OFT) has visited the head offices of Asda and Morrisons as part of an investigation into price fixing. |
| The supermarkets told BBC News they were "happy to assist" the OFT. | The supermarkets told BBC News they were "happy to assist" the OFT. |
| Sunday press reports suggest key suppliers have also been targeted over claims they colluded over the prices of a wide range of products. | Sunday press reports suggest key suppliers have also been targeted over claims they colluded over the prices of a wide range of products. |
| Sainsbury's and Tesco said that they had been asked for information and were cooperating. The OFT would not comment. | Sainsbury's and Tesco said that they had been asked for information and were cooperating. The OFT would not comment. |
| The Sunday Telegraph reported that the four biggest supermarkets are being investigated by the OFT for allegedly swapping information on future pricing on a wide range of product areas, including groceries and health and beauty. | |
| What triggered this latest probe? There is a possibility that one supermarket has attempted to obtain leniency by co-operating with the OFT Robert Peston, BBC business editor See Robert Peston's blog | What triggered this latest probe? There is a possibility that one supermarket has attempted to obtain leniency by co-operating with the OFT Robert Peston, BBC business editor See Robert Peston's blog |
| The Sunday papers reported that the offices of the supermarkets' major suppliers had also been visited and requests for e-mails made. | The Sunday papers reported that the offices of the supermarkets' major suppliers had also been visited and requests for e-mails made. |
| The BBC's business editor Robert Peston considers that the latest OFT investigation could have been sparked after "one supermarket identified possible price-fixing and has attempted to obtain leniency by co-operating with the OFT". | The BBC's business editor Robert Peston considers that the latest OFT investigation could have been sparked after "one supermarket identified possible price-fixing and has attempted to obtain leniency by co-operating with the OFT". |
| Companies found guilty of price collusion can expect fines under the Competition Act of 10% of turnover. | Companies found guilty of price collusion can expect fines under the Competition Act of 10% of turnover. |
| Under the 2002 Enterprise Act, cartel-like behaviour may also carry a jail term of up to five years for directors or senior executives involved. | Under the 2002 Enterprise Act, cartel-like behaviour may also carry a jail term of up to five years for directors or senior executives involved. |
| New investigation | New investigation |
| Sainsbury's and Tesco would not say whether their headquarters received a surprise visit from OFT officials last Thursday. | Sainsbury's and Tesco would not say whether their headquarters received a surprise visit from OFT officials last Thursday. |
| A Sainsbury's spokesperson said: "We have been asked for some information regarding a number of suppliers and product categories and are helping the OFT with their enquiries. | A Sainsbury's spokesperson said: "We have been asked for some information regarding a number of suppliers and product categories and are helping the OFT with their enquiries. |
| "We do not have any further knowledge of the details of their concerns." | "We do not have any further knowledge of the details of their concerns." |
| A Tesco spokesperson said: "We understand that the OFT has asked for information from a wide range of suppliers and retailers. We are working with them to provide what they require. | A Tesco spokesperson said: "We understand that the OFT has asked for information from a wide range of suppliers and retailers. We are working with them to provide what they require. |
| "At Tesco we are confident that we always act in the interest of consumers." | "At Tesco we are confident that we always act in the interest of consumers." |
| Hard-ball tactics? | Hard-ball tactics? |
| The revelation comes two days after the OFT announced it was looking into allegations that 11 retailers, including Asda, Sainsbury and Tesco, and tobacco firms were working together to fix the price of tobacco products. | The revelation comes two days after the OFT announced it was looking into allegations that 11 retailers, including Asda, Sainsbury and Tesco, and tobacco firms were working together to fix the price of tobacco products. |
| The banking and housebuilding sectors have also been the targets of the OFT recently. | The banking and housebuilding sectors have also been the targets of the OFT recently. |
| The OFT was forced to apologise to Morrisons last week over an inaccurate press release suggesting that Morrisons was guilty of breaking certain rules pertaining to fixing the prices of certain dairy products which it hadn't. | The OFT was forced to apologise to Morrisons last week over an inaccurate press release suggesting that Morrisons was guilty of breaking certain rules pertaining to fixing the prices of certain dairy products which it hadn't. |
| To settle the defamation case, the watchdog paid the supermarket giant £100,000. | To settle the defamation case, the watchdog paid the supermarket giant £100,000. |
| This has fuelled criticism from some business leaders over the watchdog's tactics, which have been described as overly aggressive since the OFTs current chief executive John Fingleton took charge at the end of 2005. | This has fuelled criticism from some business leaders over the watchdog's tactics, which have been described as overly aggressive since the OFTs current chief executive John Fingleton took charge at the end of 2005. |
| Mike Pullen, head of competition, at the law firm DLA Piper agrees that the agency has become more aggressive in its approach, but says the OFT is only acting within its powers under statute. | Mike Pullen, head of competition, at the law firm DLA Piper agrees that the agency has become more aggressive in its approach, but says the OFT is only acting within its powers under statute. |
| "It is a fine balancing act," he said. | "It is a fine balancing act," he said. |
| "You don't want an anti-business culture among the regulators, but there is no point in having regulation unless it is enforced." | "You don't want an anti-business culture among the regulators, but there is no point in having regulation unless it is enforced." |