The State's largest milk-processor, Glanbia, has reached a settlement with the Competition Authority over alleged price-fixing with other milk processors.
Glanbia and Sligo Dairies were two of five named defendants in High Court proceedings taken by the Competition Authority on foot of allegations of price fixing between 1995 and 1998.
In a statement today the authority said: "As a result of the settlement Glanbia and Sligo Dairies both gave undertakings in the High Court last Friday that they would comply with the terms of the Competition Act 2002 and not enter into any agreement, or engage in any concerted practice, to fix the retail price of liquid milk."
The allegations of price-fixing were made on RTÉ's Prime Timeprogramme, and claimed Irish consumers were being ripped off to the tune of millions by an illegal cartel in the liquid-milk industry.
The programme singled out Glanbia, formerly known as the Avonmore/Waterford Group, as the driving force behind the price-fixing cartel.
At the time Glanbia denied the charges, saying because it was involved in a legal action with the Competition Authority, it could not comment in detail as the matter is sub-judice.
The settlement announced today was similar to that reached between the Competition Authority and Tesco in December 2002.
The statement said proceedings continue against Dairygold Dairies Limited and Superquinn.
