India Chemical is an Indian company active in the production of industrial

chemicals. India Chemical is a leading producer of industrial chemicals

used in the production of domestic (household) cleaning agents

worldwide. India Chemical has extensive business operations in the EU,

and it supplies its products to all major manufacturers of cleaning agents

in the different EU Member States. The industrial chemicals market is

considered a stable one and no other company has attempted to enter

into this market in recent years. India Chemical's share in the supply of

industrial chemicals used in the production of domestic cleaning agents

in the EU is about 80%; its market share in relation to the production of

all types of industrial chemicals in the EU, however, is considerably lower

than this. Two years ago, this market share was about 50%. India

Chemical has a number of competitors in the EU but none of them holds

a market share higher than 2%.

Advise India Chemical on the application of EU competition law to each

of the following proposals:

(a)

They would like to offer their customers favourable discounts on

future purchases of all types of industrial chemicals purchased

from them;

(b)

They are proposing to refuse to supply new customers who do

not commit to purchasing exclusively from them; and

(c)

They are proposing to raise their prices by 40%. Their customers

are not happy with this possible price increase but they believe

that there is little they can do.