ÖBB and ČD colluded to exclude RegioJet from the market by restricting access to used wagons, hindering competition in rail transport. Credit: Erich Westendarp/Pixabay.

The European Commission (EC) has imposed fines totalling €48.7m ($52.6m) on Czech rail operator České dráhy (ČD) and Austrian rail operator Österreichische Bundesbahnen (ÖBB) for breaching European Union (EU) antitrust rules.

The two companies were judged to have colluded to block competitor RegioJet from the market by restricting access to used wagons, hindering competition in rail passenger transport.

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ČD and ÖBB were found to have engaged in anti-competitive practices from 2012 to 2016.

Their collusion aimed to maintain market dominance and prevent RegioJet, which entered the Czech long-distance passenger market in 2011, from expanding its services, including on the international route between Prague and Vienna.

Its investigation revealed that ČD and ÖBB coordinated wagon sales and manipulated bidding processes to ensure RegioJet could not acquire ÖBB’s quality used wagons.

These wagons were crucial for RegioJet due to their modern features and approval for operation in Czechia. The companies also shared confidential bid information, further undermining the sales process.

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European Commission executive vice-president in charge of competition policy Margrethe Vestager said: “Today we are fining ČD and ÖBB a total of €48.7 million for joining forces in their incumbent positions to hinder the expansion of their competitor RegioJet.

“They prevented RegioJet from buying ÖBB’s used railway wagons, on which RegioJet relied to compete with ČD and ÖBB. Attractive rail passenger services are key for reducing our carbon footprint and we do not tolerate any restriction of competition.”

The fines were calculated following the EC’s 2006 Guidelines on fines, considering the infringement’s seriousness, geographic scope, and duration.

ÖBB’s cooperation with the Commission’s leniency programme led to a 45% reduction in their fine, acknowledging the evidence provided to establish the cartel’s existence.

The EC’s actions, including unannounced inspections in June 2016 and a Statement of Objections in June 2022, demonstrate its commitment to enforcing Article 101 of the Treaty on the Functioning of the European Union (TFEU).

This article prohibits agreements that prevent, restrict, or distort competition within the EU’s internal market.