Price-fixing could be industry-wide curse

Lack of resources at the Office of Fair Trading (OFT ) may explain why more food companies haven't been busted for price-fixing, law experts have claimed.

"Food sectors may be caught up in price-fixing, but you have to remember that the OFT has limited resources," said a legal source, who asked not to be named. Some companies broke the rules without realising, while others just threw caution to the winds, she said. "The food and drink industry should know the risks, and you'd expect bigger companies to be clued-up - but then, look at British Airways." The company was fined £121.5M by the OFT after it admitted to anti-competitive activity.

Alexandra Kemerling, a competition lawyer at DLA Piper said: "There are inevitably conversations between suppliers and retailers, so where do you draw the line between gathering market intelligence, and entering into an implicit agreement that you are going to hold fast on price?"

Arla, Dairy Crest, Lactalis McLelland, The Cheese Company, Robert Wiseman and the four major retailers, are all under investigation by the OFT for price-fixing between 2002 and 2003 - an alleged crime said to have cost consumers £270M.

"It's no problem if companies want to charge more or less for a product and give farmers a share," said an OFT spokesman. "What we care about is if it reduces competition."

The OFT is now awaiting the parties' responses to its statement of objections and any comments from interested third parties, before deciding whether the law has been breached.