Five retailers, including Asda and Somerfield, along with tobacco firm Gallaher, have agreed to pay up to £173m in fines to the Office of Fair Trading (OFT) after admitting colluding on the price of tobacco products.
The companies – which also include Threshers owner First Quench, One Stop Stores and TM Retail – admitted engaging in unlawful practices.
Their combined fine will fall to £132m if they continue to co-operate fully with the OFT to get the case resolved quickly.
But Sainsbury’s, which was the first retailer to ask for leniency, is to escape a fine if it continues to co-operate.
The OFT alleged in April 2008 that 11 retailers and two tobacco manufacturers had broken competition law by swapping information on the price of cigarettes.
Its investigation against the Co-operative Group, Imperial Tobacco, Morrisons, Safeway, Shell and Tesco is continuing.
The alleged infringements date from 2000 to 2003.
