The Competition Appeal Tribunal has upheld an appeal by Claymore
Dairies Ltd against a decision of the Office of Fair Trading (OFT) to
close an investigation into alleged anti-competitive practices in the
Scottish market.  The initial OFT investigation had been prompted
by claims from Claymore Dairies, the Scottish subsidiary of Arla Foods
UK plc, that Robert Wiseman Dairies plc had abused its dominant
position through predatory and discriminatory pricing campaigns
targeted at attracting Claymore's 'middle-ground' customers.  The
OFT decided to close its investigation on the basis that the likelihood
of finding a breach in competition rules was not high enough to merit
committing any further resources.  On appeal, the CAT found that
parts of the OFT investigation were materially inadequate and that the
OFT's approach had been overcautious.  As a result, the CAT
overturned the decision but declined to make an order that the OFT
re-open the investigation, saying that it was for the OFT to decide
what future action to take.

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