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10 August 2011
Last updated at 04:42 ET
Tesco has threatened legal action after being hit with a £10m fine from the Office of Fair Trading (OFT) following an inquiry into the price fixing of dairy products.
The supermarket giant was one of nine firms facing penalties totalling close to £50m for colluding over the price of milk and cheese in 2002 and 2003.
But Tesco expressed "surprise and dismay" that it was included in the penalties handed down by the regulator.
Tesco denies it colluded with others.
The OFT has said that as a result of the price fixing, an extra £270m was spent by UK consumers.
It estimates that the collusion saw shoppers pay 3 pence extra for a pint of milk, and 15p extra per quarter-pound of butter. The overcharging also led to customers being allegedly overcharged by 15p per half-pound of cheese, the watchdog said.
Fines The OFT found that Arla, Asda, Dairy Crest, McLelland, Safeway, Sainsbury's, The Cheese Company, Wiseman, and Tesco infringed the Competition Act by co-ordinating rises in the prices consumers paid for certain dairy products in 2002 and, or 2003.
The first eight all received more lenient fines after admitting liability.
However, Tesco has denied collusion and said it would defend its position vigorously, and "through the courts if necessary".
Fines were originally set at a total of £116m, but were reduced after consultation.
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The supermarket giant was one of nine firms facing penalties totalling close to £50m for colluding over the price of milk and cheese in 2002 and 2003.
But Tesco expressed "surprise and dismay" that it was included in the penalties handed down by the regulator.
Tesco denies it colluded with others.
The OFT has said that as a result of the price fixing, an extra £270m was spent by UK consumers.
It estimates that the collusion saw shoppers pay 3 pence extra for a pint of milk, and 15p extra per quarter-pound of butter. The overcharging also led to customers being allegedly overcharged by 15p per half-pound of cheese, the watchdog said.
Fines The OFT found that Arla, Asda, Dairy Crest, McLelland, Safeway, Sainsbury's, The Cheese Company, Wiseman, and Tesco infringed the Competition Act by co-ordinating rises in the prices consumers paid for certain dairy products in 2002 and, or 2003.
The first eight all received more lenient fines after admitting liability.
However, Tesco has denied collusion and said it would defend its position vigorously, and "through the courts if necessary".
Fines were originally set at a total of £116m, but were reduced after consultation.
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