Commission fines České dráhy and Österreichische Bundesbahnen €48.7 million over collusion to exclude common competitor

(Credit: Unsplash)

This article is brought to you in association with the European Commission.


The European Commission has fined České dráhy (‘ČD‘) and Österreichische Bundesbahnen (‘ÖBB‘), the Czech and Austrian rail incumbents, a total of €48.7 million for breaching EU antitrust rules. ČD and ÖBB colluded to prevent a new entrant, RegioJet, from accessing used wagons, thus restricting competition on the rail passenger transport market.

The infringement

ČD and ÖBB provide rail passenger transport services in Czechia and Austria. In 2011, RegioJet entered the long-distance rail passenger transport market in Czechia. To compete with ČD and ÖBB, RegioJet largely relied on used wagons.

The Commission’s investigation found that, between 2012 and 2016, ČD and ÖBB colluded to maintain their market position and impede the expansion of RegioJet both in Czechia and on the international rail route between Prague and Vienna, in breach of Article 101 of the Treaty on the Functioning of the European Union (‘TFEU’).

ČD and ÖBB coordinated their actions in sales processes related to used ÖBB wagons for long-distance passenger transport, to prevent RegioJet from buying them. ÖBB’s wagons were particularly relevant for RegioJet, in light of their quality and modern features, but also because they were already approved for operations in Czechia.

In particular, the Commission found that ČD and ÖBB:

  • Collusively timed wagon sales so that RegioJet could not buy ÖBB’s used wagons.
  • Rigged ÖBB’s used wagon sales procedures so that ČD could buy the wagons instead of RegioJet.
  • Agreed on a suitable buyer other than RegioJet for ÖBB’s used wagons that ČD was not interested in.
  • Exchanged confidential information about the bids and degree of interest of other bidders participating in the sales.

The fine

The fines were set on the basis of the Commission’s 2006 Guidelines on fines. In setting the level of fines, the Commission took into account various elements, including the serious nature of the infringement, its geographic scope and its duration.

ÖBB cooperated with the Commission under the leniency programme (2006 Leniency Notice) and therefore received a fine reduction of 45%. The reduction reflects the timing of ÖBB’s cooperation and the extent to which the evidence it provided helped the Commission to prove the existence of the cartel.

The breakdown of the fines imposed on each company is as follows:

 Fine (€)Leniency reduction
ÖBB16 712 00045%
ČD31 940 0000%

Background

In June 2016, the Commission carried out unannounced inspections. The Commission sent a Statement of Objections in June 2022.

Article 101  TFEU, which can also be applied by national competition authorities, prohibits anticompetitive agreements and concerted practices between companies that affect trade between Member States and that have as their object or effect the prevention, restriction or distortion of competition within the internal market.

Fines imposed on companies found in breach of EU antitrust rules are paid into the general EU budget. These proceeds are not earmarked for particular expenses, but Member States’ contributions to the EU budget for the following year are reduced accordingly. The fines therefore help to finance the EU and reduce the burden for taxpayers.

To deliver on the objectives of the EU Green Deal, emphasis is placed on increasing the efficiency of the transport system, strongly prioritising rail transport as an environment-friendly mode of transport. This cannot be achieved without the existence of effective competition and attractive rail transport services.

Action for damages

Any person or company affected by anticompetitive behaviour as described in this case may bring the matter before the courts of the Member States and seek damages. The case law of the Court of Justice of the European Union and Regulation 1/2003 both confirm that in cases before national courts, a Commission decision that has become final constitutes binding proof that the behaviour took place and was illegal. Even when the Commission has fined the cartel participants concerned, damages may be awarded by national courts without being reduced on account of the Commission fine.

The Antitrust Damages Directive makes it easier for victims of anticompetitive practices to obtain damages. More information on antitrust damages actions, including a practical guide on how to quantify antitrust harm, is available here.

Whistleblower tool

The Commission has set up by a tool to make it easier for individuals to alert it about anticompetitive behaviour while maintaining their anonymity. The tool protects whistleblowers’ anonymity through a specifically designed encrypted messaging system that allows two-way communications. The tool is accessible via this link.

For More Information

More information will be made available under the case number AT.40401 in the public case register on the Commission’s competition website. A periodic compilation of antitrust and cartel news is available in the Competition Weekly News Summary.

Margrethe Vestager, Executive Vice-President in charge of competition policy

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

© UNDP Nidaa with the chickens and ducks she raises in Gaza.

Sustaining livelihoods amid crisis in Gaza

This article is published in association with United Nations. Nidaa, Hanaa and Hanin have different stories, but share a common thread: the determination to build something of their own and keep it going despite extraordinary challenges facing them in war-ravaged Gaza. Following the devastation of the past three years, productive capacity in Gaza has been severely […]
© UNICEF/Oleksii Filippov A firefighter works on the balcony of a wrecked building in Kyiv, Ukraine.

World News in Brief: Russian attacks continue in Ukraine, Gazans shelter in flood-prone areas, keeping sight of eye health

This article is published in association with United Nations. UN human rights chief Volker Türk said on Thursday he was appalled by a wave of attacks that have killed civilians across Ukraine over the past four days.  They include a strike on two public buses in Kramatorsk on Thursday, that left at least 30 civilians dead, […]
This article is published in association with United Nations.

Ukraine: UN condemns latest attacks and calls for civilian protection

This article is published in association with United Nations. The UN Humanitarian Coordinator for Ukraine on Wednesday called for an end to attacks against civilians following further overnight strikes by Russian forces that reportedly killed at least 19 in the Chernihiv Region. Among the dead in Pryluky were five children, three of them babies, according to the […]
© UNICEF-SoP/Crickx People walk down a dusty road in the West Bank carrying belongings.

Israeli demolition in East Jerusalem displaces 69 Palestinians

This article is published in association with United Nations. Sixty-nine Palestinians – more than half of them children – were displaced on Tuesday after Israeli authorities green lit the demolition of their residential building in the At Tur area of East Jerusalem, the UN aid coordination office (OCHA) has reported. This is the highest number of […]
This article is published in association with United Nations.

‘The clock on AI regulation is ticking’, warns UN rights chief

This article is published in association with United Nations. The world is running out of time to put guardrails on artificial intelligence, UN High Commissioner for Human Rights Volker Türk warned Monday, as a “ruthless race” between companies and countries raises concerns about human safety and even humanity’s survival. Speaking in the UK at an AI […]
© UNOCHA/Alina Basiuk A school in Ukraine lies in ruins after being hit by a missile.

Ukraine war ‘a human rights catastrophe’ that must end, says Türk

This article is published in association with United Nations. Human Rights The war in Ukraine is a human rights catastrophe that is “growing and intensifying by the week” and threatening an even greater disaster across the region, UN High Commissioner for Human Rights Volker Türk said on Friday. Addressing the Human Rights Council in Geneva, Mr. […]
UN News Massive tent settlement of displaced residents extends along the damaged Gaza coastline.

Palestinians yearn for ‘a return to normal life’, says top Middle East peace envoy

This article is published in association with United Nations. The UN is continuing efforts to support Palestinians in Gaza amid major challenges to humanitarian access, reconstruction and the restoration of essential services, according to Ramiz Alakbarov, Acting UN Special Coordinator for the Middle East Peace Process. Speaking to UN News on the margins of the UN […]
©UNIFIL/Tilak Pokharel UNIFIL personnel distribute food kits to displaced families in Saida, Lebanon (file).

Lebanon: One in five children goes to bed hungry, says UNICEF

This article is published in association with United Nations. Four in five households in Lebanon struggle to afford basic necessities today, with children increasingly going without food, missing school and being pushed into work as conflict compounds years of economic crisis. “I wanted to buy clothes for my children, but I could not. I also wanted […]

World News in Brief: Deadly Myanmar strikes as Malaysia begins deportations, new emergency funding released, Gaza and West Bank update

The UN chief on Tuesday strongly condemned an airstrike that reportedly killed at least 50 people at a market in Myanmar’s Rakhine state and called for those responsible to be held to account. Forces from the military junta reportedly hit Kyauktaw township around midday on Monday, when the market’s more than 200 shops were busy […]
This article is published in association with European Investment Bank.

EU provides €61 million in humanitarian aid amidst rapidly deteriorating situation in Ethiopia

This article is brought to you in association with the European Commission. Amid fears of renewed conflict in Northern Ethiopia, the European Union is providing €61 million in humanitarian funding to help the most vulnerable people in Ethiopia affected by conflict, displacement, disease outbreaks and climate-related hazards, including the impact of El Niño. The European Union […]
© UNDP A worker installs solar panels in Lanao del Sur in the Philippines.

From energy crisis to energy transition: How renewables are reshaping energy security

This article is published in association with United Nations. The continuing conflict in the Middle East is disrupting global energy markets and pushing up fuel prices, with knock-on effects far beyond the region. For Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), the crisis is also reshaping how the world understands the phrase […]
Countries adopted on Saturday a new global blueprint for tackling rapidly evolving forms of crime, as the UN’s largest gathering on crime prevention and criminal justice opened in Abu Dhabi with a call for stronger international cooperation. The Abu Dhabi Declaration was adopted by acclamation at the opening of the 15th United Nations Congress on Crime Prevention and Criminal Justice, bringing governments together around challenges ranging from cybercrime and fraud to the growing criminal exploitation of digital technology. The Declaration highlights an increasingly complex landscape in which services, infrastructure and technology can be exploited by criminals, including emerging trends described as “crime as a service” and “violence as a service”. At the same time, countries committed to making greater use of technology themselves, including by digitalizing justice systems and harnessing artificial intelligence in criminal justice responses. The Declaration stresses that safeguards must accompany those changes, including human oversight, transparency, due process and data protection. ‘Justice cannot be a privilege’ In a video message to the Congress, UN Deputy Secretary-General Amina Mohammed said the meeting was taking place at a time of profound change. “Justice cannot be a privilege. It must protect every person, uphold every person’s rights and leave no one behind,” said Ms. Mohamed. “This Congress is an opportunity to renew our shared commitment to justice and the rule of law, and to translate that commitment into action.” Countries are already being encouraged to put the Declaration into practice through the voluntary Pledge4Justice initiative, under which participating governments are announcing concrete, time-bound actions on crime prevention and criminal justice through 2031. The Abu Dhabi National Exhibition Centre with its curved glass tower and surrounding buildings reflected in calm water at dusk. UNODC The Abu Dhabi National Exhibition Centre where the 15th UN Crime Congress is set to take place. From Kyoto to Abu Dhabi Opening the Congress, UN Office on Drugs and Crime (UNODC) Executive Director Monica Juma framed the gathering as both a response to a changing criminal landscape and a test of international cooperation. “Today, the world convenes in Abu Dhabi to reaffirm that the rule of law and criminal justice are essential to the safety and security of people and the planet,” said Ms. Juma. “At a time when confidence in multilateralism is faltering, let Abu Dhabi be a testament to international cooperation.” Five years after the previous Congress in Kyoto, Japan, Ms. Juma said the world had reached another “inflection point”, with technology and artificial intelligence advancing at extraordinary speed. The same platforms connecting billions of people can also connect criminals, she warned, while digital currencies can conceal illicit profits and digital tools can be used to deceive, manipulate and exploit. Technology, she argued, is not simply accelerating crime but changing its character, while organized criminal networks increasingly exploit weaknesses across borders and institutions. Tweet URL Protecting people as the ‘north star’ Behind those broad trends, Ms. Juma urged delegates to focus on the people most exposed to harm, including children recruited by gangs, women facing violence at home or online, people unable to obtain legal assistance and young people lured into scam networks with promises of a better future. “Protecting these people must be the measure against which we judge our efforts over the coming week,” she said. “It must be our north star.” She called for laws and institutions capable of keeping pace with changing threats, greater access to justice and legal aid, and technology that serves as “a force for good” rather than an accelerator of harm. And while welcoming the Abu Dhabi Declaration as a starting point, Ms. Juma stressed that its impact would ultimately depend on implementation. A week focused on justice Hosted by the United Arab Emirates, the Congress runs through 1 October under the theme Protecting People and Planet in the Digital Age. Some 119 countries are represented, alongside more than 40 justice ministers and other senior officials, with over 5,100 participants from governments, civil society, academia and the private sector. Plenary meetings, workshops, side events and exhibitions will run throughout the session. Organizers are also billing this as the most youth-inclusive Crime Congress yet. Young people are participating in workshops, contributing to follow-up efforts and taking part in a dedicated Youth Lab and art exhibition, following a Youth Forum held ahead of the Congress on 24 and 25 September. UNODC serves as secretariat of the Congress and will support implementation of the Abu Dhabi Declaration.

Countries adopt global blueprint to tackle fast-evolving crime in digital age

This article is published in association with United Nations. Countries adopted on Saturday a new global blueprint for tackling rapidly evolving forms of crime, as the UN’s largest gathering on crime prevention and criminal justice opened in Abu Dhabi with a call for stronger international cooperation. The Abu Dhabi Declaration was adopted by acclamation at the […]
United Nations President Mahmoud Abbas of the State of Palestine addresses the General Debate of the UN General Assembly’s 81st session.

Palestinian existence under threat, Abbas tells UN, warning of ‘another Nakba’

This article is published in association with United Nations. Israeli policies now threaten “the very life and existence of the Palestinian people on their homeland”, Palestinian President Mahmoud Abbas told the UN General Assembly on Thursday, urging the world not to allow “another Nakba”.  Mr. Abbas addressed the Assembly’s annual debate via pre-recorded video after his […]
© UNICEF/Oleksii Filippov A rescue worker stands outside a residential building in Kyiv’s Solomianskyi district that was severely damaged during a massive overnight attack on the city.

World News in Brief: ‘New intensity’ to Russian attacks on Ukraine, Yemen, Gaza and Colombia updates

This article is published in association with United Nations. Russian armed forces have carried out repeated attacks across Ukraine over the past several days, killing and injuring civilians and damaging homes, hospitals, shops and workplaces, UN human rights monitors said on Thursday. The attacks have involved ballistic and cruise missiles, drones and guided aerial bombs. Between […]
UN Photo/Loey Felipe President Volodymyr Zelenskyy of Ukraine addresses the General Debate of the UN General Assembly’s 81st session.

Zelenskyy urges stronger pressure on Russia, warns war’s impact is spreading beyond Ukraine

This article is published in association with United Nations. Ukrainian President Volodymyr Zelenskyy on Wednesday called for intensified pressure on Russia to end its war against Ukraine, arguing that Moscow continues to incur massive losses while prolonging a conflict whose consequences are increasingly being felt far beyond the battlefield. Addressing the UN General Assembly’s annual debate, […]
UN Photo/Loey Felipe President Donald Trump of the United States addresses the General Debate of the UN General Assembly’s 81st session.

Trump defends military action against Iran, Venezuela, and calls for rebrand of AI

This article is published in association with United Nations. US President Donald Trump used his address to the UN General Assembly on Tuesday to defend recent military action against Iran, urging countries to maintain economic pressure on Tehran – and declaring that he now faces a choice between making a deal, or taking far more drastic […]
© UNICEF/Oleksii Filippov An injured girl climbs the partially collapsed stairwell of a building in Boryspil, Ukraine, following a missile strike.

‘Nowhere is safe’: UN experts detail Ukraine war’s toll and Russia’s reach beyond its borders

This article is published in association with United Nations. UN Human Rights Council-appointed experts on Monday laid out a grim picture of the human cost of Russia’s invasion of Ukraine, with a spotlight on civilians facing a third wartime winter as well as the intimidation of Russians who have fled abroad. The Independent International Commission of Inquiry […]
© UNICEF/Robic Upadhayay Aid workers transport supplies past a flood-damaged house in Nepal.

Nepal floods: ‘Apocalyptic’ destruction signals wider climate threat across Himalayas

This article is published in association with United Nations. The catastrophic flooding that swept away entire villages in northern Nepal could occur again in the country or elsewhere in the Himalayas due to climate change. The warning comes from Sara Netzer, regional director with UN field operations office UNOPS, which provides infrastructure, procurement and project management […]
This article is published in association with United Nations.

World News in Brief: Winter aid for Gaza, West Bank; Haiti food production; migrant deaths at sea; human rights funding

The UN Children’s Fund (UNICEF) is seeking to raise $97.5 million to protect 540,000 children and their families in Gaza and the West Bank from harsh winter conditions in the coming months. Nearly 84 per cent of Gaza’s population – more than 1.76 million people – live in overcrowded displacement sites or damaged shelters, leaving […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com