Bid-rigging: even more OFT investigations spark backlash

An announcement of further investigations and raids on the supermarket sector by the Office of Fair Trading (OFT) has sparked a backlash against the watchdog.

It was revealed that the OFT, which accused 112 firms of uncompetitive tendering practices two weeks ago, raided four big supermarkets: Tesco, Asda, Sainsbury's and Morrisons on Thursday, as it investigated allegations of price-fixing of both groceries and health-and-beauty products.

The development marks the latest in a string of increasingly aggressive moves by the OFT in a number of industry sectors. It has already launched inquiries into housebuilding, the dairy industry, construction and tobacco.

One source quoted in the Guardian said: "We feel this is getting a bit silly. It feels like the OFT is going on a fishing trip as it asked for such a wide range of information."

Meanwhile a spokesman for Tesco issued a response which said that the supermarket was "surprised" by the allegations of collusion given the competitive nature of the supermarket sector.

Last week the OFT was forced to apologise to Morrisons and pay it £100,000 following inaccuracies in a press release published last September.