Morrisons has lodged a libel claim against the OFT after it was named in the watchdog's investigation into an alleged milk cartel.

In December the OFT named the retailer among a list of supermarkets and dairies that the competition watchdog claimed were guilty of fixing milk prices.

Morrisons has denied the findings and accused the OFT of damaging its reputation.

Morrisons would have been outraged by the fact that the OFT named all the accused parties before its investigations were complete, a competition lawyer told The Grocer. " Normal procedure is to keep company names confidential until the inquiry is over," he added.