The company, part of the giant Unilever group, says that investment might be cut back if the Competition Commission insists on 'hypothetical remedies'.

Rival ice creams say they don't get a look-in

"We may not be able to sustain present levels of investment in the UK if the Commission persists with some of the hypothetical remedies it is considering," chairman Ian Ferguson told a group of MPs.

"We want to safeguard the 2,000 jobs associated directly, or with sub-contractors, in producing and distributing Wall's ice cream," he added.

His concerns were echoed by David Drew, Labour MP for Stroud, whose constituency includes many workers from Birds Eye Wall's Gloucester factory.

He said: "Of course any allegations of anti-competitive behaviour must be investigated but my concerns are centred on the implications for the broader economy if Wall's are unable to sustain their present levels of investment in the UK."

Wall's ice creams include Magnum, Viennetta, and Feast.

Monopoly probe

Wall's has been accused by the Competition Commission of stifling competition by its marketing and distribution tactics.

The concerns centre around the pricing policies of Birds Eye Wall's Direct and its policy of "freezer exclusivity".

Retailers are given free freezers for ice cream by the company on the condition that they do not stock rival products.

Responding to the complaint, the company denied trying to force rival freezers out of shops or giving incentives to retailers to abandon owning their own freezers.

Prohibiting freezer exclusivity would deny freedom of choice to retailers, increase freezer costs - damaging the freezer making industry - and driving up costs to consumers, the company claimed.

It also questioned proposals to abandon recommended retail prices, which it said could lead to higher prices in the shops.