Lidl and Tesco have resolved their bitter dispute in the Irish Republic over the latter’s price comparison campaign which the discounter claimed was misleading.

The High Court in Dublin was told this week that behind-the-scenes talks had led to a settlement.

Senior counsel representing Lidl, Michael Collins, said that as a result, the chain was withdrawing its application for an injunction against Tesco to halt the disputed ad campaign, and the proceedings could be struck out.

Tesco had compared its prices on a range of products with those allegedly being charged by Lidl, and claimed to be cheaper. However, Lidl argued that some of the prices cited in the ads were incorrect and others were misleading in that they did not compare like with like. When Tesco refused to back down, it took court action.

Under the settlement terms, Tesco agreed to remove from its stores posters citing the price comparison and claiming to be cheaper than Lidl. It has also undertaken to remove similar signage on particular items on its shelves.

In a statement, Tesco said: “The result means we can continue to advertise and communicate our low prices, including comparative advertising, as part of our overall campaign to reduce prices.”