The Antimonopoly Office of the Slovak Republic fined the participant to the freight rail transport market

On August 22, 2013 the Antimonopoly Office of the Slovak Republic, Division of Abuse of Dominant Position and Vertical Agreements (hereinafter only „the Office“) issued a decision on restriction on the market of freight rail transport. The dominant company abused its position by adopting exclusionary strategy consisting of restriction of leasing/selling of electric locomotives and restriction of refueling motor locomotives for competitors in such a way that it has distorted competition on the market. The Office imposed a fine in the amount of EUR 10 253 662 for violation of competition rules.

A necessary pre-condition for the carriers to provide freight rail transport services is to have access to locomotives, which could be either electric or diesel. The electric ones are, however, more effective than the diesel ones. The electric locomotives capable to operate in the Slovak Republic are predominantly owned by the dominant which did not want to sell/rent them to its rivals. Hence, the private carriers have been increasingly using the less effective diesel locomotives. Diesel locomotives need regular refuel of oil, however the network of fuel-stations for diesel locomotives is owned by the dominant, which did not allow private carriers to refuel at their fuel-stations. Behaviour of the dominant, which was fined by the Office, increased costs of competing carriers. Carriers were not able to effectively provide their services, succeed on the market, grow and compete with the dominant.

The decision is not valid yet. As it is a first-instance decision and the party to the proceedings may submit an appeal, the Office does not provide any details on the subjected decision for the time being.
Last update:02.12.2013