Competition Policy Government Regulation of Competitive Behaviour

Abstract

There are two major suppliers of soda ash in Western Europe. Solvay dominates the Continental market, whilst ICI has a market share of over 90 per cent in the British Isles. In 1991 they were fined respectively ECU 30 million and ECU 17 million by the Commission of the European Community for infringement of the EC’s competition rules. For several years the two firms had operated a collusive arrangement to split the European market. This eliminated competition between them since each firm had a ‘local’ monopoly position.