The OFT’s decision to deny a further review of the news industry is the subject of a joint legal challenge by the Association of Convenience Stores (ACS) and the National Federation of Retail Newsagents (NFRN).
In an unprecedented move, the ACS and NFRN are jointly challenging the OFT’s rationale that the review fails to meet its prioritisation principles. The retail organisations claim the OFT’s decision appears to rely on faulty evidence from publishers and wholesalers, while retailers’ evidence appears not to have been fully taken into account.
ACS chief executive James Lowman said: “We do not take this action lightly, however the OFT has left us with no choice.
“We cannot accept its rationale for why an industry valued at £7bn, that serves millions of customers every day, that operates as a monopoly and is wasteful and inefficient is not a priority.”
NFRN National President Kieran McDonnell said: “So long as the OFT fails to act they continue to support a market that is rife with anti competitive practices. This legal action is the latest step in our ongoing fight for fairness and equality in serving our customers.”
The case was presented to the Competition Appeals Tribunal on May 1.