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UK supermarkets under investigation for fixing prices

Britain’s competition watchdog is investigating allegations of price fixing at the country’s largest supermarkets, a newspaper reported.

The Sunday Telegraph said that Tesco PLC, Wal-Mart Inc’s Asda, J Sainsbury PLC and Morrison Supermarkets PLC were among those targeted by the Office of Fair Trading. The paper said the supermarkets’ offices — and those of their suppliers — were raided by officials examining allegations that they colluded to fix the prices of groceries, health and beauty products.

The report was carried in a preview of yesterday’s paper made available late on Saturday. The Sunday Telegraph did not cite a source for the information, and the Office of Fair Trading declined comment.

“We don’t comment when we’ve got an investigation under way,” a spokeswoman for the office said.

Tesco denied any wrongdoing, saying in an e-mail statement that it was surprised by the allegations. A spokeswoman for Sainsbury’s declined to comment, while no one picked up the phone at the press offices for Asda or Morrison.

The Office of Fair Trading has taken a hard line on anticompetitive practices in recent years. In the past two weeks alone the regulator accused tobacco companies and several major retailers of colluding on cigarette prices and named more than 100 construction companies in a major investigation into bid-rigging.

The office can give warnings or orders, but also has the power to take legal actions or impose financial penalties.
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