The strategy is revealed in a draft opinion published as part of the OFT's ongoing investigation into the newspaper and magazine wholesale business. Under the present system, wholesalers are awarded exclusive territories by publishers and are protected from competition.
Wholesalers are unable to sell to retailers outside their territory, meaning retailers cannot seek a better deal from rival operators.
The OFT's report states that restricting competition in this way is illegal, unless it is shown to benefit the consumer through product innovation or lowering cover prices, for example.
'It is important that this market, as any other, delivers choice, innovation and competitive prices for consumers,' said OFT chief executive John Fingleton. 'This draft opinion questions whether the current system of local monopolies provides sufficient competitive incentives to publishers and wholesalers.'
The consultation period on the draft opinion closes on September 1.
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