The UK government has moved to end the stranglehold of Birds Eye Wall's, Nestle and Mars on the sale of ice cream.

Trade and Industry Secretary Stephen Byers has called on the three companies to end the trading agreements with retailers which abuse their monopoly power.

Many retailers can only supply ice cream from one manufacturer. They are given free freezers for ice cream on the condition that they do not stock rival products.

Small manufacturers had said that the ice cream giants had an unfair advantage.

The government's instructions refer to the sale of ice lollies and choc-ices, not to soft or scoop ice cream.

Consumer choice

The move is aimed at giving consumers more choice, Mr Byers said.

The Competition Commission report found that outlet and freezer exclusivity restricts competition between manufacturers and retailers.

While it has put an end to Birds Eye Wall's freezer exclusivity agreements, Nestle and Mars can continue with their freezer agreements.

Birds Eye Wall's has two thirds of the market and Mars and Nestle freezer deals are seen as crucial to helping them compete.

The firm interprets Friday's ruling as saying that it cannot insist on freezers containing more than 50% of its products, but retailers could stock more if they want to.

Birds Eye fight back

The decision is sure to provoke a strong response from Birds Eye, a subsidiary of Unilever.

It has earlier warned that ending these agreements could lead to job cuts.

The company has previously denied trying to force rival freezers out of shops or giving incentives to retailers to abandon owning their own freezers.

Prohibiting freezer exclusivity would deny freedom of choice to retailers, increase freezer costs - damaging the freezer making industry - and drive up costs to consumers, the company claimed in the past.