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German Cartel Office Finds Deutsche Bahn Guilty of Antitrust Violations

By  |  March 12, 2024
germany

The German Federal Cartel Office has determined that Deutsche Bahn (DB) is in breach of antitrust law, accusing the state-owned railway behemoth of leveraging its market dominance against mobility platforms. The decision, marking the culmination of a lengthy investigation, mandates changes to DB’s ticketing procedures and contractual terms, although DB has promptly contested the verdict and announced its intention to pursue legal recourse.

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    The Cartel Office’s findings paint a picture of DB utilizing its pivotal position in both transportation and infrastructure sectors to stifle competition originating from third-party mobility platforms. Integral to the ruling is the assertion that the services offered by these platforms, facilitating integrated route planning for travelers, heavily rely on the integration of Deutsche Bahn’s offerings and transport data. With a vertical integration spanning from network operation to ticket sales, DB emerges as the undisputed dominant force in Germany’s rail passenger transport market.

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    This positioning subjects Deutsche Bahn to scrutiny under antitrust abuse control, necessitating specific obligations towards rival companies, according to the Cartel Office’s decree. Among the identified practices deemed problematic are data sharing limitations, advertising restrictions, vertical pricing constraints, stringent discount prohibitions, and the withholding of commissions crucial for the sustenance of third-party platforms. Andreas Mundt, President of the Federal Cartel Office, underscores the significance of robust antitrust enforcement, asserting that without it, mobility platforms’ business models struggle to compete against Deutsche Bahn.

    The Cartel Office, also known as the Bundeskartellamt, unveiled its decision on Monday, following an investigation initiated in 2019. Last year’s preliminary findings already pointed to DB’s ticketing strategies as indicative of market power abuse. However, this isn’t the first time DB has come under the regulatory spotlight. Proceedings dating back to 2003 highlight previous instances where Deutsche Bahn faced scrutiny for its reluctance to incorporate a competitor’s timetable data into its services.

    Criticism of Deutsche Bahn isn’t confined to the Cartel Office alone. In 2021, the German Monopoly Commission questioned the current structure of the DB group, specifically citing concerns over network management and operations. The commission advocated for a potential split-up to mitigate market dominance concerns.

    One of the key grievances highlighted by the Cartel watchdog is DB’s alleged denial of continuous and non-discriminatory access to real-time traffic data, essential for organizing multi-modal journeys and bookings. Such data, referred to as forecast data, plays a pivotal role in facilitating seamless transportation experiences.

    Source: Rail Tech