London - Britain's Office of Fair Trading (OFT) said Friday it would investigate allegations that leading tobacco firms and supermarkets were engaged in price fixing. The competition watchdog named 11 retailing chains, including supermarket giants Asda, Sainsbury and Tesco, and tobacco firms Imperial Tobacco and Gallaher.
It alleges that deals between cigarette companies and retailers limited the retailers' ability "to determine its selling price independently."
Arrangements between manufacturers and retailers linked the retail price of one brand to that of a competing brand, the OFT alleges.
The alleged infringements took place between 2001 and 2003.
"If we find evidence of anti-competitive activity, we are prepared to use the appropriate powers to punish the companies involved and to deter other businesses from taking part in such behaviour," the OFT said.
