Brussels (Brussels Morning Newspaper) – The EU Commission has fined Austrian rail firm Osterreichische Bundesbahnen and Czech company Ceske Dray a sum of 48.7 million euros for barring a Czech rival’s market expansion.
EU Commission said both companies Ceske Dray (ČD) and Osterreichische Bundesbahnen (ÖBB) colluded to stop a new entrant, RegioJet, from accessing used wagons, thus limiting competition in the rail passenger transport market.
What evidence supported the EU Commission’s investigation?
The EU Commission’s investigation discovered that, between 2012 and 2016, ČD and ÖBB conspired to maintain their market position and restrict the expansion of RegioJet both in Czechia and on the international rail path between Prague and Vienna. ČD and ÖBB coordinated their efforts in sales processes related to using ÖBB wagons for long-distance passenger transport, to prevent RegioJet from buying them. ÖBB’s wagons were especially relevant for RegioJet, in light of their quality and modern characteristics, but also because they were already authorised for operations in Czechia.
Why was the fine set at 48.7 million euros?
As reported by the EU Commission, the fines were imposed based on the Commission’s 2006 Guidelines on fines. In assessing the level of fines, the Commission took into account various factors, including the serious nature of the breach, its geographic scope and its duration.
ÖBB collaborated with the Commission under the leniency programme (2006 Leniency Notice) and therefore received a fine decrease of 45%. The reduction echoes the timing of ÖBB’s cooperation and the extent to which the proof it provided helped the Commission to establish the existence of the cartel.
