Wm Morrison, the UK supermarket chain, is suing the UK’s Office of Fair Trade (OFT) for libel after the OFT claimed Morrison was allegedly part of a 2002 milk cartel, and is demanding a judicial review of how the OFT is handling the case. Several food companies have come under investigation recently on charges of price-fixing, and this is a sign those companies are starting to fight back. Tesco, according to the Financial Times, is also planning to fight the allegations, but is holding off on legal action until after the investigation. Other supermarkets that have admitted guilt, including Asda and J Sainsbury, have been given reduced fines totaling £116m.

The BBC reports that the OFT originally cited Morrison as one of the alleged members of the cartel, but later clarified its press release:

In September 2007, the OFT said it had provisionally found evidence against a number of supermarkets and dairy processors.

It alleged they had colluded to fix the price of some dairy products by sharing commercially sensitive information in 2002 and in some cases, 2003.

The OFT clarified its position concerning Morrisons in December last year.

It said its provisional findings related to allegations Morrisons colluded in respect of certain liquid milk products in 2002 only and that it regretted “any confusion which may have arisen”.

Through their claim, Morrison’s accuses the OFT of libel with “direct, intended and foreseeable consequence of the publication [of the press release].” No doubt all other supermarkets involved in the allegations will be watching the outcome of Morrison’s case with a lot of interest. If the company is successful, many similar lawsuits should be expected.