UK’s competition watchdog, the Office of Fair Trading (OFT), accused two big tobacco companies and 11 retailers of alleged unlawful co-ordination of prices.

Tobacco firms and supermarkets face massive fines following allegations of collusion over cigarette prices. The OFT alleges that between 2000 and 2003 Gallaher, Imperial Tobacco and 11 retailers made arrangements that restricted the ability of each retailer to determine its selling price independently.
This was achieved by linking the retail price of a manufacturer's brand to the retail price of a competing brand of another manufacturer.
The retailers that have been issued with a statement of objections include all four major supermarket groups: Tesco, J Sainsbury, Asda and Wm Morrison, as well as the Co-operative Group, the off-licence group First Quench, Shell, Somerfield and the convenience store groups T& S Stores and TM Retail.
In the case of Gallaher, Imperial Tobacco, Asda, Sainsbury, Shell, Somerfield and Tesco, the OFT also alleges that they indirectly exchanged information on proposed future retail prices.
Imperial Tobacco said it rejected "any suggestion that it has acted in any way contrary to the interests of consumers". Gallaher said the group was "currently reviewing" the OFT's statement and that it will be responding to the OFT as required.
The tobacco groups and retailers have a month to respond to the charges. If any companies are found guilty of a breach of the law they could be fined up to 10 per cent of relevant turnover, although the penalty could be reduced if they help with the investigation. (ci)