Italy: Railway competition struggles despite privatization

While Italy’s decision to privatize railways was implemented in hopes of boosting competition in the once state-controlled sector, reports say new market entrants have struggled to gain their footing.

The struggles could be indicative of the challenges faced when governments look to inject competition in struggling markets throughout Europe, say reports.

National railway Ferrovie Dello Stato Italiene was founded more than a century ago; since competitors began entering the market, however, rivals have accused Ferrovie subsidiaries of trying to detail the competition.

Nuovo Trasporto Viaggiatori entered the industry in 2012 to operate high-speed trains but has accused a Ferrovie subsidiary of anticompetitive behavior.

Reports say that amid the feuding companies, Italy’s largest problem is that it looked to boost competition in the rail market before establishing a transportation regulator to oversee that competition. Antitrust regulators have recently opened a probe into state-run Ferrovie following complaints by NTV.

Full Content: The Guardian

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