Price Info Swap Anti-Competitive

The Office of Fair Trading (OFT) can take a very strong line when it discovers that price information is passing between competitors with the result that the competition between them is diminished. This can include situations in which information about future pricing policy is passed by indirect means.



When supermarkets including Tesco allowed future pricing intentions on dairy products to be shared with competitors, the OFT took action against them.



Despite a partially successful appeal, the Competition Appeal Tribunal found that Tesco had acted contrary to Chapter 1 of the Competition Act 1998.



Allowing pricing information to pass to competitors can in some cases lead to a breach of the law, if the effect is to create a situation of market distortion or a cartel. In such cases, even if the distortion to a free market is local or industry specific, the OFT may act if it discovers the collusion.



Heavy fines can be the result.