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Monday, 25 June, 2001, 16:59 GMT 17:59 UK
Dairy firm faces price cap
Wiseman milk cartons
Wiseman is a well known Scottish brand
Scottish dairy giant Robert Wiseman has expressed disappointment at plans to restrict how much it can charge for its milk.

The East Kilbride-based company has said it will make representations to the Office of Fair Trading (OFT) on the appropriateness of the price cap.

The OFT said it was forced to take the action to stop Robert Wiseman Dairies from inflicting what it described as "serious and irreparable damage" on its competitors, which includes Claymore and Express Dairies.

The OFT is conducting an investigation into claims by Express Dairies that Robert Wiseman has been indulging in price fixing and anti-competitive practices.

Corner shop shelves
The firm is alleged to have fixed prices to corner shops
It has been alleged that Robert Wiseman and three other Scottish dairies have been fixing the price of milk in the so called middle market which takes in small local retailers.

The OFT says it has reasonable grounds to suspect an infringement of the Competition Act, however, it has not come to a final decision.

The price cap is an interim measure imposed by the government body. The companies can appeal against the ruling.

If the dairies are found guilty of price fixing they could be fined up to 10% of their turnover, which in the case of Wiseman's could be up to �30m.

It was announced in February last year that Wiseman Dairies would face an inquiry by the Competition Commission for alleged anti-competitive trading.

The firm, which has a 70% share of the Scottish milk market, was accused of market sharing, price discrimination, exclusive dealing and predation.

The monopoly inquiry was launched after a complaint was lodged against the company.

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See also:

17 May 01 | Scotland
Milk firms under investigation
01 Feb 00 | Business
Supermarkets: 'no rip-off'
28 Jan 00 | Business
Blow to ice cream monopolies
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