Rail Regulator acts on allegations of anti-competitive behaviour by English Welsh and Scottish Railway Limited in the rail freight sector

6 May 2004
ORR/11/04

The Rail Regulator has today given notice in writing to English Welsh and Scottish Railway Limited (EWS) that he proposes to make a decision that EWS has infringed the prohibition contained in Chapter II of the Competition Act 1998, through its imposition of contracts with exclusionary effect and via exclusionary pricing practices in relation to coal-haulage by rail.  The Regulator’s notice to EWS sets out in detail the reasons why he proposes to make that decision.

EWS now has the opportunity to make written and oral representations in response to the Regulator’s notice.  These will be fully considered before any final decision is made.

The Regulator has today decided to close his file in relation to two further investigations of EWS’s conduct.  Those investigations related to:

  • Alleged anti-competitive conduct by EWS affecting third-party purchasers of locomotives from General Motors Corporation (GM); and
  • EWS’s practices and policies in relation to second-hand locomotive sales.
The Regulator has written to EWS separately in relation to both those investigations, explaining his decision in each case.  He will shortly be publishing  non-confidential versions of this correspondence with EWS.

Notes for Editors

  1. The Regulator is an independent statutory office holder appointed by Government under the Railways Act 1993 (“the Railways Act”), to regulate the railways following privatisation. The Regulator exercises powers under the Competition Act 1998 (the Act) concurrently with the OFT in respect of agreements or conduct which relate to the supply of services relating to railways (see section 67(3) of the Railways Act).
  2. The Act contains two prohibitions:
    (i) the Chapter I prohibition prohibits agreements between undertakings, decisions by associations of undertakings or concerted practices which have the object or effect of preventing, restricting or distorting competition in the UK (or any part of it) and which may affect trade within the UK (or any part of it); and
    (ii) the Chapter II prohibition prohibits conduct by one or more undertakings which amounts to the abuse of a dominant position in a market which may affect trade within the UK (or any part of it).
  3. Rule 14 of the Competition Act 1998 (Director’s rules) Order 2000 requires that where the Regulator proposes to make a decision that either of these prohibitions has been infringed the Regulator should provide written notice of that intention to each person whom the Regulator considers has been or is a party to or is engaged in the conduct which has led to the infringement.
  4. EWS has today received a rule 14 notice only in respect of its conduct in coal-haulage by rail.

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