MORRISONS TO CHALLENGE THE OFT'S FINDINGS

Wm. MORRISON SUPERMARKETS PLC

MORRISONS TO CHALLENGE THE OFT'S FINDINGS IN RELATION TO ITS TOBACCO INVESTIGATION

The OFT has today issued a decision, alleging that Morrisons was engaged in unlawful practices in relation to retail prices for tobacco products in the UK. Similar allegations are made against Safeway, relating to the period prior to its acquisition by Morrisons.

Morrisons considers the OFT's stance to be illogical and without foundation. The practices to which the OFT refers were intended to reduce the retail prices charged to consumers, and the OFT has itself acknowledged that its case is based on a novel interpretation of the law. Morrisons fully expects that when this case is considered with proper judicial scrutiny by the Competition Appeal Tribunal, the OFT's findings will be overturned.

At all times Morrisons set its retail prices for tobacco products independently, and endeavoured to get the very best deal for its customers. It is therefore disappointing that the OFT has claimed that legitimate arrangements between Morrisons and its suppliers, aimed at reducing the price paid by Morrisons customers, are unlawful.

Morrisons takes adherence to competition law very seriously, and operates a comprehensive and robust compliance programme, which was extended to cover Safeway immediately on its acquisition by Morrisons.

-ENDS-

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