Morrisons has been cleared of dairy price-fixing allegations by the Office of Fair Trading (OFT).

The grocer, which was due to update on first-quarter trading as Retail Week went to press, said it had co-operated fully with the OFT but maintained it was never involved in any move to increase the price of dairy products.

The OFT concluded there was insufficient evidence to support taking its investigation further. The OFT is continuing with its wider dairy investigation and expects to issue a decision in early summer 2010.

Separately, the OFT also decided to drop certain allegations against Tesco as part of its investigation into dairy price fixing.

Morrisons, along with various other grocers, remains involved in a separate OFT investigation into tobacco price fixing and said the allegations against it will be “vigorously” challenged.