OFT fines dairy firms, supermarkets 116 mln stg

LONDON - Britain's consumer affairs watchdog said on Friday it had fined dairy and supermarket groups, which admitted fixing milk, butter and cheese prices, 116 million pounds ($235 million).

The Office of Fair Trading said it was continuing to pursue Britain's biggest supermarket group, Tesco, smaller rival Morrison and diary firm Lactalis McLelland.

In September the consumer watchdog said it had found evidence that the supermarkets and their suppliers had colluded to hike dairy product prices between 2002 and 2003, costing Britain's consumers around 270 million pounds.

The OFT said it had reduced fines for supermarkets Asda, Safeway (in relation to conduct prior to its acquisition by Morrison) and J Sainsbury and dairy companies Dairy Crest, Robert Wiseman and The Cheese Company, because of their cooperation.

Dairy processor Arla got off without a fine after it reported the price fixing practices.