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OFT closes investigation into Wiseman Dairies alleged abuse of dominant position

PN49/02     9 August 2002

The OFT has closed its investigation into whether Wiseman Dairies abused a dominant position in the supply of fresh-processed milk to middle-ground retailers in Scotland.

The OFT found that it is probable that the middle-ground market in Scotland is separate from that in England and that it was likely that Wiseman has a dominant position in the market. Middle-ground customers are those customers who are not supermarkets or supplied by doorstep deliveries.

However, after an extensive and thorough investigation, the OFT takes the view that further investigation is unlikely to lead to a finding of abuse. In these circumstances, the OFT cannot justify proceeding with the case.

As a result, the voluntary assurances given by Wiseman on milk sales beginning on 30 September 2001, will lapse from the date of the closure of the investigation, on 9 August 2002.

NOTES

1. Powers under the Competition Act 1998

The Act gives the OFT powers to investigate suspected infringements of the Act's prohibitions:

i) the Chapter I prohibition prohibits agreements between undertakings, decisions by associations of undertakings or concerted practices which have the object or effect of preventing, restricting or distorting competition within the UK (or any part of it) and which may affect trade within the UK (or any part of it); and

ii) the Chapter II prohibition prohibits conduct by one or more undertakings which amounts to the abuse of a dominant position in a market which may affect trade within the UK (or any part of it).

2. In this press release the functions of the Director General of Fair Trading (DGFT) under the Act are for simplicity described as the functions of 'the OFT'. The Enterprise Bill proposes to replace the office of the DGFT with the OFT, to which would be transferred the DGFT's functions.

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