The Association of Convenience Stores and National Federation of Retail Newsagents have launched a joint legal challenge against the Office of Fair Trading for failing to investigate the newstrade sector.

The OFT completed a three-year investigation into the sector in 2009 and said it would review it again in two years. However, in March it said a further review was unnecessary.

The ACS and NFRN claim the decision “fails to meet the OFT’s prioritisation principles”.

“We cannot accept its rationale for why an industry valued at £7bn, that operates as a monopoly and is wasteful and inefficient, is not a priority,” said ACS chief executive James Lowman.