The Australian Competition and Consumer Commission yesterday instituted proceedings against W.D.& H. O Wills (Australia) Ltd and a delicatessen operator, alleging price-fixing in relation to the sale of cigarettes by the delicatessen and a nearby competitor.

The ACCC has alleged that employees of Wills induced the operator of the Fourth Avenue Delicatessen and the proprietor of two nearby businesses to enter into and give effect to the agreement and that Wills was party to the agreement.

It is alleged that the price-fixing agreement was made for cigarettes at a series of meetings between Wills employees and each of the other parties in September and October 1996 in Adelaide. The alleged agreement provided for the delicatessen to raise its prices on certain brands on 10 October 1996 and for the competitor to follow one week later.