Associated, publisher of the London Evening Standard and the morning freesheet Metro, is to be investigated by the Office of Fair Trading, which made its announcement last night.
The investigation follows a complaint from Desmond about the exclusive distribution deal that the Metro has with London Underground, which he has called anti-competitive. The deal to distribute the Metro ensures the paper is in tube and rail stations throughout the capital and has been a crucial factor in the success of the title.
In a statement, the Daily Mail & General Trust said: "Associated Newspapers has received an information request from the Office of Fair Trading concerning the distribution arrangements for Associated Newspaper's London newspapers."
Desmond's plans to launch the Evening Mail hinge on securing a distribution agreement, which can easily put the title in the hands of London commuters, but Associated's current deal prevents him from giving the title away inside London railway stations.
Daily Mail & General Trust said it would cooperate with the enquiry, which could take several months.
There will be no love lost between Express Newspapers and Associated, with the bitter rivals taking any opportunity to score points off each other. This has included complaints about each others' advertising campaigns; threatened legal action of the use of the title "The Evening Mail"; reports that Associated plans to launch a redtop to rival Express's Daily Star; and sniping interviews.
The latest salvo in the war came from Desmond, who has been quoted in the media saying that London deserves his new freesheet because it "doesn't have an evening newspaper". Other high-profile Londoners have made similar comments of late, namely Mayor Ken Livingstone, who has described the Evening Standard as "a pale imitation of the Daily Mail".
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