John Lewis and Dixons spat could end up in court

John Lewis could take Dixons' to court if the Office of Fair Trading (OFT) fails to intervene over the retail giant's alleged stranglehold of the home PC market.

In an exclusive interview with Silicon.com, Paul Burden, director of communications for John Lewis, said the company may resort to direct legal action if the OFT fails to clamp down on the retailer.

"If that doesn't succeed there is the option of going to the courts, and asking them to review the [OFT's] decision," he said.

John Lewis has the backing of other PC outlets Comet and Tempo, in calling for a new investigation into Dixons business practices. It claims that the situation has changed significantly since the last OFT investigation in 1999 found no evidence of anti-competitive behavior.

Burden says the OFT is now out of date, and hasn't recognised changes in competition law and new agreements signed between Dixons and suppliers Compaq and Packard-Bell.

On Monday, the OFT said it saw no reason to investigate Dixons any further, but Burden confirmed John Lewis is currently in discussions with the OFT over the matter.

The review that the OFT conducted last year took into account PCs sold from traditional retailers and via the Internet and mail order. John Lewis argues there are many people who want to buy PCs, but need advice from shop assistants to make a decision, and at present Dixons has a virtual monopoly in this market.

Burden said: "This isn't just an argument between Dixons and John Lewis - it's an argument between Dixons and every other High Street retailer of PCs. It is not fair to say to those for whom mail order or Internet buying is not an option that they have to buy from one high-street store."

John Lewis also compared the OFT's stance unfavourably with that of the Department of Justice in the US, saying the OFT is keeping the research behind its decision not to act, out of the public eye. Conversely, the Microsoft trial was characterised by full disclosure by the authorities.

Dixons sells PCs through its Currys, Dixons and PC World brands.