No Competition

In 2006, the UK Office of Rail Regulation (ORR) fined Britain's largest rail freight operator, English Welsh and Scottish Railway Limited (EWS), with a £4.1m fine for anti-competitive practices. This article discusses the details of what EWS did to contravene the law. ORR found evidence that supports a continuing strategy by EWS to exclude or restrict its potential competitors' participation in the market for coal haulage by rail. In particular, the ORR found that EWS had entered into a series of long-term exclusionary coal haulage contracts with some industrial users of coal. EWS also engaged in discriminatory pricing by setting higher prices for a specific third party intermediary for coal purchase while offering significant reductions directly to this intermediary's customers. EWS also engaged in predatory pricing behavior directed toward one of its competitors. Besides the £4.1m fine, the company was directed to remove the exclusionary terms from its contracts.

  • Availability:
  • Authors:
    • Owen-Howes, Rebecca
    • Szlezinger, Sam
  • Publication Date: 2007-3

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 01046566
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Apr 16 2007 11:40AM