Wednesday 10 August 2011

The Cost of Fixing the Price of Milk

Tesco's in a bit of a lather at being fined a few quid for price-fixing, then ?

And well might they be. Because hovering in the background is something more than just a slap on the wrist:

"The DGFT can impose a penalty of up to 10% of a company's turnover for the infringement of the prohibitions (section 36, 1998 Competition Act)... the turnover will be a company's UK group turnover for each year of the infringement up to a maximum of three years"

We'll be hearing a lot about penalties for misbehaviour of all sorts in the coming days and weeks. A slightly more retributive spirit in the air.

Think on, Mr Tesco, think on. (And you, Mr Goodwin, we haven't forgotten.)


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