UK supermarket chain Tesco has lost its appeal against a ruling over the use of discounter Lidl’s yellow circle logo.  

The decision likely concludes the legal battle initiated in 2020 when Lidl accused Tesco of adopting a similar logo against a blue background for its "Clubcard Prices" discount scheme. 

Last year, both companies accused each other of brand imitation and customer deception.  

The High Court ruled that Tesco had taken "unfair advantage" of Lidl's reputation for low prices.  

A Lidl spokesperson was quoted by Reuters as saying: “We expect Tesco now to respect the court’s decision and change its Clubcard logo to one that is not designed to look like ours.”  

Meanwhile, Tesco has confirmed plans to revise the logo. 

The retailer previously said that nearly £8m ($10.2m) will have to be spent to remove all the infringing logos. 

A Tesco spokesperson was quoted as saying: "We are disappointed with the judgment relating to the colour and shape of the Clubcard Prices logo but would like to reassure customers that it will in no way impact our Clubcard Prices programme." 

The Court of Appeal's decision comes at a time of intense competition in the UK's £230bn grocery market, Reuters added.  

Tesco reportedly holds a market share of nearly 28% while Lidl holds close to 8% of the market. 

Earlier this year, Tesco challenged Reigate and Banstead Borough Council for approving Lidl’s store development plan in Surrey.