The German discount chain Aldi has launched a legal action against Dunnes Stores over alleged trademark infringement.

The case came before the Commercial Court this morning.

Aldi alleges Dunnes has infringed its trademark with ads comparing grocery prices.

Lawyers for the German chain say Dunnes Stores's lower price guarantee claim is not true.

Its lawsuit against the Irish retailer was today transferred to the commercial division of the High Court.

Mr. Justice Peter Kelly put the case back until March to fix a date for hearing.

Aldi took a similar action against Tesco last year.

It highlights just how competitive the €9 billion supermarket sector is in Ireland.