European Commission Finds Cartel Involving Czech and Austrian Rail Incumbents

Strategic Insights -

The European Commission has concluded that Ceske drahy, a.s. (CD) and Osterreichische Bundesbahnen-Holding Aktiengesellschaft (OBB) participated in a cartel to restrict RegioJet's access to used railway wagons for long-distance passenger transport between Austria and Czechia. The cartel lasted from 9 May 2012 to 21 January 2016, targeting RegioJet's market entry and expansion in Czechia and neighboring countries. The Commission's decision notes that the parties colluded to rig sales procedures, delayed sales, and exchanged information to prevent RegioJet from acquiring the wagons.

Key Takeaways:

  • The European Commission has found a cartel involving two European rail incumbents, Ceske drahy, a.s. (CD) and Osterreichische Bundesbahnen-Holding Aktiengesellschaft (OBB), aiming to restrict RegioJet's access to used railway wagons.
  • The cartel lasted from 9 May 2012 to 21 January 2016, targeting RegioJet's market entry and expansion in Czechia and neighboring countries.
  • The Commission's decision notes that the parties colluded to rig sales procedures, including cancelling and delaying sales, to prevent RegioJet from acquiring the wagons.
  • Out of five sales processes, the parties discussed avoiding a sale to RegioJet in all instances and succeeded in three.
  • Examples of the parties' collusive efforts include exchanging information about other bidders' bids, contacting each other to agree on final prices, and having top management contacts to prevent wagon sales to RegioJet.
  • The parties' core business is providing rail passenger transport services in Czechia, Austria, and on international lines between the two Member States.
  • RegioJet was an actual competitor of CD in Czechia and a potential competitor of OBB and CD on the Prague-Vienna route.

Statistics:

  • The cartel lasted from 9 May 2012 to 21 January 2016, covering a period of approximately 3 years and 8 months.
  • Out of five sales processes, the parties succeeded in avoiding a sale to RegioJet in three instances.
  • The Commission's decision notes that the parties exchanged information about other bidders' bids and the degree of interest of other bidders in at least one instance.
  • OBB and CD had top management contacts to coordinate their efforts and prevent wagon sales to RegioJet.

Sources:

  • Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty1
  • Regulation (EC) No 773/2004 of 7 April 2004 relating to the conduct of proceedings by the Commission pursuant to Articles 81 and 82 of the Treaty3
  • OJ L 1, 4.1.2003, p.1
  • OJ L 123, 27.4.2004, p. 18