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Wednesday, 10 August 2011

Case Study for the Office of Fair Trading

The OFT has fined 9 companies a total of £50m for price fixing of dairy products in 2002 to 2003. Arla, Asda, Dairy Crest, McLelland, Safeway (now Morrisons), Sainsbury's, Tesco, The Cheese Company and Wiseman are the dairy producers/supermarkets involved who fixed the price of milk, cheese, butter and other dairy products.

This is a good case study to mention in the exam to discuss why firms would want to engage in collusive agreements (see cartel although this isn't necessarily a cartel, it displays characteristics) and the effectiveness of regulatory bodies in protecting consumers against anti-competitive practices.

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