Tobacco firms probed over price fixing

By Dan Lalor

LONDON (Reuters) - Tobacco companies and retailers, including all big four supermarket chains, were accused by the consumer affairs watchdog on Friday of fixing prices on cigarettes between 2000 and 2003.

The Office of Fair Trading (OFT) said it had named two tobacco manufacturers -- Imperial Tobacco and Japan Tobacco-owned Gallaher -- and 11 retailers in a so-called statement of objections (SO), which was not published.

Companies found guilty can be fined up to 10 percent of relevant turnover. The OFT said it should not be assumed that the parties named in the SO have broken the law.

Imperial Tobacco said, "We take compliance with competition law very seriously and reject any suggestion that we have acted in any way contrary to the interests of consumers".

Gallaher could not immediately be reached for comment.

The retailers named are Wal-Mart-owned Asda, Co-operative Group, First Quench, Morrisons, Safeway, Sainsbury, Shell, Somerfield, T&S Stores, Tesco and TM Retail.

A Tesco spokesman said: "We do not believe that Tesco has acted in a way that has harmed consumers and we will make this clear to the OFT when we see the details of their allegations".

Asda said: "As the contents of the SO are confidential we won't be making any further comment".