LONDON (Reuters) - The consumer watchdog is imposing fines of up to 116 million pounds after a string of dairy and supermarket groups owned up to fixing milk, butter and cheese prices.
In September, the Office of Fair Trading (OFT) said it had found evidence that the supermarkets and their suppliers had colluded to hike dairy product prices between 2002 and 2003, costing consumers around 270 million pounds.
In a statement on Friday, the OFT said grocery giants J Sainsbury and Asda and a number of dairy firms had admitted raising prices, while it was continuing to pursue the country's biggest supermarket group, Tesco, smaller rival WM Morrison and dairy firm Lactalis McLelland.
Tesco and Morrisons said they would fight the charges.
"We acted independently and we did not collude with anyone," said Tesco in a statement. "Our position is different from our competitors and we are defending our own case vigorously."
Morrisons said: "We continue to make strong representations to the OFT in defence of the allegation."
The OFT said it had reduced fines for Asda, Safeway -- in relation to conduct prior to its acquisition by Morrisons -- and J Sainsbury, as well as dairy companies Dairy Crest, Robert Wiseman and The Cheese Company, because of their cooperation.
Dairy processor Arla was let off without a fine after it handed over evidence of the price fixing, which the firms say was designed to pay farmers a higher price for milk.
In reality, the fines are likely to be far below the maximum, which the OFT said was "over 116 million pounds".
"Each party will receive a significant reduction in the financial penalty that would otherwise have been imposed on it, on condition that it continues to provide full co-operation," the OFT said in a statement.
Sainsbury is likely to pay 26 million pounds for its part in the wrongdoing, Dairy Crest will pay 9.4 million, Robert Wiseman will pay 6.1 million and Ireland's Glanbia, which used to own the Cheese Company, said it could be fined up to 2 million.
Asda said it did not know how much it would have to pay.
Shares in Dairy Crest rose 7 percent in early trading and Robert Wiseman rose 2.8 percent with investors relieved at the size of the fines.
"The fine (for Robert Wiseman) is modest at just 1 percent of turnover or 6.1 million pounds versus a maximum potential of 10 percent," said Investec analysts Nicola Mallard
Tesco, Sainsbury and Morrison were little changed.
Buy your milk from Owen's, or any local shop
but serious