John Fingleton’s tenure at the competition watchdog the Office of Fair Trading has coincided with some huge fines for price collusion within oligopolistics markets and yesterday came one of the biggest with a tobacco manufacturer and five retailers agreeing to pay the biggest collective penalty yet imposed for price-rigging after admitting their role in efforts to boost the cost of cigarettes.The six companies agreed to pay £132m to settle the charges with Gallaher, one of two tobacco manufacturers involved in the case, shouldering the lion’s share of the burden after agreeing to pay £93m.The Times reports that “The six companies fined made prompt admissions of illicit competition practices in return for lenient fines.” - another example of game theory and the prisoners dilemma in action!

Coverage here

BBC news: Six firms fined in tobacco probe The Telegraph: OFT’s hefty fines for tobacco price fixing The Times: Supermarkets and tobacco firm are fined £173m for price fixing Office of Fair Trading press release

There is a recent profile of John Fingleton here in the Times