A company raided as part of an FBI probe into price-fixing has been fined more than £160,000 for making an illegal deal not to undercut a rival on Amazon.

Trod Ltd, which operates from a warehouse in Rednal, agreed to pay £163,371 following the investigation by the Competition and Markets Authority (CMA).

The fine was imposed just four months after the company fell into administration after suffering "significant trading difficulties" over a number of years.

In December, Trod's warehouse in Rednal was raided by West Midlands Police in an FBI-led investigation into price-fixing, leaving the company's owner facing a possible jail sentence and massive fines.

In the ruling, the CMA said Trod admitted using automated repricing software to introduce an illegal cartel in conjunction with Sheffield-based GB eye, which trades as GB Posters.

It meant the two companies would not undercut each other's prices.

Trod, whose brands include Buy 4 Less, Buy-For-Less-Online and 247 Toys, and GB eye sold licensed sport and entertainment merchandise and related products.

These included posters, frames, badges, stickers and mugs, with popular images from the sport and entertainment world such as One Direction and Justin Bieber.

The CMA said the cartel applied specifically to posters and frames sold by both parties on Amazon Marketplace, via Amazon's UK website, between March 2011 and July 2015.

Still in administration today, Trod's fine was reduced by 20 per cent after it admitted its role and co-operated with the CMA's investigation.

Provided it continues to co-operate and complies with the other conditions of the CMA's leniency policy, GB eye will not receive a fine.

Amazon itself was not involved in the cartel and was not investigated by the CMA.

Stephen Blake, senior director and head of the CMA's cartels and criminal group, said: "The internet is an increasingly important way in which people buy products or services in their everyday lives.

"Sellers on online platforms need to be aware that agreeing with each other to limit price competition in this way is illegal and can have serious consequences for the companies and individuals involved."