The decision came after Coles was taken to the commission on fears that the price reductions, which kick-started a price war with rival Woolworths, was engaging in predatory pricing which would affect dairy farmers.
The commission chairman Graeme Samuel said in the verdict that the most major impact from the reduction has been on the supermarket’s profits, but has benefited consumers who purchase house brand milk.
On the matter of dairy farmers and processors, Samuel said that evidence has shown that most milk processors pay the same farm gate price to dairy farmers irrespective of whether it is intended to be sold as branded or house brand milk.