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Last Modified: 25 Apr 2008
By: Bridgid Nzekwu

The Office of Fair Trading launches a new investigation accusing seven supermarkets and two tobacco companies of colluding over prices.

Two tobacco manufacturers, Gallagher and Imperial Tobacco and seven of Britains' supermarkets, including Tesco, Asda and Sainsbury are facing investigation for anti-competitive pricing.

The Office of Fair Trading has launched an investigation alleging that a group of 13 companies colluded to link the price of some cigarette brands to rival products. It's also alleged that some of those named arranged to swap information on future pricing.

Of the companies that have responded Tesco and Imperial Tobacco both said they'd not acted in ways to harm consumers. Our Money reporter Bridgid Nzekwu reports