Rail Transport and Competition Policy –

National Rail Undertakings after the GVG/FS Case

Achim PützCEDIT – Centro de Derecho del Transport InternacionalUniversitat Jaume I de Castellón

European Railway Policy

• Directive 91/440- access to international groupings and combined transport operators- only accounting not organic separation

• First and Second “Railway Package”- national regulatory bodies- no prohibition of vertical integration

• “Third Railway Package”- liberalization of international rail passenger transport

• Problems:- Cabotage?- Existing public services contracts?

Rail Transport and Competition Policy

Monopoly of national carriers

Infrastructure management Rail transport

Directive 91/440 et seq.Articles 81 and 82

Upstream markets Downstream market

Infrastructure management

Traction

Rail transport services

Vertical integration

Control of market power:

1) Sector-specific regulationThe control is exercised by specific regulatory bodies.

2) Competition rulesTheir application corresponds to national and European antitrust authorities.

Monopolistic

Quasi monopolistic

structure

“Essential facilities”

1

2

“Essential facilities” limit the property rights of infrastructure managers and traction providers by virtue of Article 82 of the Treaty.

Peril:

The core of property rights is concerned.

RESTRICTIVE APPLICATION

Concluding remarks

• Vertical integration demands the attribution of essential functions to an independent body and is controlled by national regulatory bodies and antitrust authorities.

• “Essential facilities” as a way to force market opening. But:As an ultima ratio.

• Complementary civil actions.

CEDIT – Centro de Derecho del Transporte InternacionalUniversitat Jaume I de CastellónCastellón / Spainwww.cedit.uji.es

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