The European Commission has informed the state-owned Czech rail incumbent České dráhy (ČD) in its preliminary view that ČD has breached EU antitrust rules by charging prices below costs.
Following a complaint, the Commission opened a formal antitrust investigation in 2016 to assess the alleged predatory conduct of ČD relating to the provision of rail passenger transport services in Czechia especially on the backbone of Czech rail network which is Prague – Ostrava route. ČD started to offer prices below its costs when RegioJet and Leo Express started operating commercial trains in 2011 and 2012 at the same area with ČD and they expanded too quickly on the market. Therefore, Commission has reached the preliminary view that between 2011 and 2019 ČD engaged in predatory pricing on the Prague – Ostrava route.
According to EU law, companies in a dominant position should not abuse their market position by restricting competition, and predatory pricing (pricing below cost) may constitute an infringement of these rules. In accordance with the rules, ČD’s behaviour, if confirmed, would amount to predatory pricing, which constitutes an infringement of Article 102 of the TFEU. The sending of a Statement of Objections (which is a procedure where the Commission informs the concerned parties in writing of the objections raised against them) does not prejudge the result of the investigation.
(European Commission, 30.10.2020)
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