Morrisons has upped the stakes in the ongoing feud between UK supermarkets and the Office Of Fair Trading, by issuing a writ against the OFT for libel.
The claim, which has been confirmed by the competition watchdog, says the OFT wrongly named Morrisons in a statement last September in relation to some aspects of an investigation into milk price-fixing.
The Financial Mail says that a submission to the High Court says the offending statement was removed 'on or about' December 3.And although the OFT clarified its initial statement, and said Morrisons colluded to increase the retail price of milk in 2002 only. Morrisons submission, however, lists more than 50 incidents of coverage in TV, radio, print and newswire articles, and will pursue the OFT because of damage to its reputation by the publication' of the statement.
Safeway was also listed by the OFT in connection with the price-fixing allegations before its acquisition by Morrisons in 2004. If Morrisons is successful, the damages, which would be paid by The Treasury, could run into tens of million of pounds.
