Britain's competition watchdog today hit ten retailers and two tobacco manufacturers with fines totalling £225 million (€256 million) for “unlawful practices” in pricing of cigarettes, cigars and rolling tobacco.
The fine — the largest total ever imposed by the Office of Fair Trading (OFT) — came after Imperial
Tobacco and Gallaher struck "price matching" arrangements with retailers in which the prices of their
tobacco products were linked to those made by rivals.
Simon Williams, the OFT's senior director of goods, said: "Practices such as these, which restrict the
ability of retailers to set their resale prices for competing brands independently, are unlawful.
"They can lead to reduced competition and ultimately disadvantage consumers."