Six Groups Fined 173.3 mln Stg in UK Tobacco Case UPDATE

Source from:  iii.co.uk LONDON, July 11 (Reuters) 07/14/2008

Six companies agreed to pay a maximum of 173.3 million pounds ($342.5 million) after admitting engaging in unlawful practices concerning the retail prices for tobacco products in the UK following an agreement with the Office of Fair Trading (OFT). The six groups include Japan Tobacco-owned Gallaher and five retailers - Wal-Mart-owned Asda, First Quench, One Stop Stores (formerly called T&S Stores), Somerfield and TM Retail, a statement by the British regulator said on Friday. A number of the six parties have previously applied to the OFT for leniency, and the total penalties the groups have agreed to pay if all leniency and early resolution discounts are given is 132.2 million pounds, rather that the pre-discount penalties total of 173.3 million pounds, the OFT said. The OFT did not say when a final decision on the level of fines would be taken. The regulator added that supermarket group Sainsbury Plc. was the first to apply to the OFT for leniency and will receive complete immunity if it continues to co-operate. Investigations will continue against Imperial Tobacco Plc., Shell and retailers Morrisons, Morrisons-owned Safeway, Tesco and the Co-operative Group, the OFT said. Imperial Tobacco said in a statement it had not admitted to any infringement of competition law and had not acted in any way contrary to the interests of consumers. It said it would continue to co-operate with the OFT. Enditem