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Hauled Over The Coals – EWS Faces £25 Million Damages Claim For Anti-Competitive Behaviour In The Coal Rail-Haulage Market
One of Britain’s leading rail cargo operators, EWS, is currently subject to a £25 million damages claim before the Competition Appeals Tribunal (CAT). The claim has been filed by a competitor, Freightliner, who alleges the loss was incurred as a result of EWS being engaged in anti-competitive behaviour contrary to the provisions of Chapter II of the Competition Act 1998 (“Chapter II”), which seeks to prevent an undertaking from abusing a dominant position within its market.
Freightliner’s claim alleges 2 counts of anti-competitive behaviour on the part of EWS. The first being that, between 1996 and 2005, EWS entered into and maintained a series of agreements to transport coal to the power stations of major energy providers (including Drax, Scottish Power and EDF Energy), the terms of which resulted in an exclusionary effect to all other competitors within the coal rail-haulage market. The second is that throughout 2002/3, EWS engaged in a practice of predatory pricing directed specifically at Freightliner. In November 2006, the Office of Rail Regulation (ORR) found EWS to have infringed Chapter II as a result of entering into these 2 agreements.
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