The dairy industry has welcomed the OFT's decision to cut the fines it imposed for price fixing by £40m.

In 2007 and 2008 the OFT dished out £116m in penalties to processors and supermarkets. However, last week it announced that in light of new material it had received, there was now insufficient evidence for breaches in relation to liquid milk in 2002 and value butter in 2003.

Dairy Crest said the £9.4m it had been ordered to pay had been reduced but would not say by how much. Robert Wiseman's fine has been cut by £1.9m to £4.2m. The OFT has also dropped its allegations against Tesco in relation to breaches over milk in 2002 and 2003 and value butter in 2003, with Morrisons also cleared of wrongdoing. "At no point did we seek to collude with other retailers or dairy processors," said Lucy Neville-Rolfe, Tesco executive director, corporate and legal affairs.