MORRISONS WELCOMES THE OFT'S DECISION

MORRISONS WELCOMES THE OFT'S DECISION TO DROP ALLEGATIONS AGAINST MORRISONS

The OFT's announcement that it has dropped all allegations against Morrisons in relation to its Dairy Products investigation is welcomed.

Morrisons has always believed strongly that it had no case to answer, maintaining that the company was not involved in any initiative to increase the price of dairy products, and that it should never have been part of the OFT's inquiry. 

Morrisons has fully cooperated with the OFT's investigation, and has provided the OFT with evidence which conclusively exonerates Morrisons.

The OFT's decision to drop all allegations against Morrisons, on the basis of the clear evidence before it, is therefore a welcome vindication of Morrisons position.

Morrisons continues to seek to ensure the best value for customers.

Notes:

1. The OFT had alleged that Morrisons indirectly disclosed to and/or exchanged with certain other retailers commercially sensitive information in respect of the retail price of certain liquid milk products in 2002 only. That allegation has now been dropped by the OFT.

2. In April 2008, the OFT issued an apology to Morrisons, and paid damages of £100,000, to settle a defamation action brought by Morrisons in the light of false claims made by the OFT that Morrisons was the subject of a provisional OFT finding of infringement in relation to milk, cheese and butter over a two year period (2002 and 2003), and that Morrisons had previously been warned by the OFT against anti-competitive behaviour.

3. The OFT's announcement also means that it has dropped two of the four allegations made against Safeway. The OFT's investigation relates to the period prior to Safeway's acquisition by Morrisons.

4. Morrisons has incurred costs of approximately £1.5 million in defending itself against the OFT's allegations.

5. On 16 April 2010 the OFT issued a decision, alleging that Morrisons and Safeway was engaged in unlawful practices in relation to retail prices for tobacco products in the UK. The OFT's allegations in relation to retail prices for tobacco products are as unfounded as its allegations against Morrisons in this case, and will be vigorously challenged by both Morrisons and Safeway.

6. 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.