ABUSE OF DOMINANT POSITION: AMO imposed fines of more than EUR 252 thousand on entrepreneurs in bus transport
The Antimonopoly Office of the Slovak Republic (AMO) based on a complaint from Žilina self-governing region (ŽSK) initiated an investigation into the provision of services related to using bus stations in ŽSK.
AMO, based on the outcomes of investigation, following its own initiative, initiated separate administrative proceedings against two entrepreneurs operating bus stations in ŽSK in the matter of possible abuse of dominant position.
After examining the information and documentation obtained during the administrative proceedings, AMO concluded that the behaviour of both entrepreneurs was in violation of the Act on Protection of Competition. According to AMO, entrepreneurs had abused their dominant position at the bus stations operated by them by applying an unreasonably high fee for a bus connection to bus carriers, which was paid (or reimbursed) by the self-governing region.
On 11 June 2024 AMO issued decisions against both entrepreneurs.
In the first decision, it imposed a fine of EUR 218 500 on an entrepreneur as a bus stations operator in ŽSK. According to AMO´s findings, the entrepreneur in dominant position had been applying an unreasonably high fee for a bus connection to bus operators at 4 bus stations during the period from 1 January 2019 until the date of the decision.
In the second decision, AMO imposed a fine of EUR 34 000 on an entrepreneur as a bus station operator in ŽSK. It also found that the entrepreneur in dominant position from 1 July 2020 until the day the decision was issued had been appliyng an unreasonably high fee for a bus connection to bus operators at the bus station operated by him.
Along with fines, AMO imposed on entrepreneurs the obligation to refrain from the given behaviour and to eliminate the illegal situation within 60 days from the day the decision comes into force.
The bus stations affected by the conduct of entrepreneurs are primarily used for the purposes of suburban bus transport or urban public transport, i. e. transport performed in the public interest. The increased costs of bus carriers are ultimately borne by the public procurers of these transport services (regions, cities), as they compensate the carriers for losses from operating suburban bus transport and urban public transport. This unjustified increase in connection fees at the bus stations of mentioned entrepreneurs had an impact mainly on ŽSK, as the amount that the region spends on suburban bus transport from its budget has increased.
To complete, from 1 July 2024 bus stations services (only services provided for carriers) will be regulated by higher territorial units. From this date, the Measure of the Ministry of Finance of the Slovak Republic of October 24, 2023 No. MF/006608/2023-77, which supplements the measure of the Ministry of Finance of the Slovak Republic dated December 9, 2003 No. 01/R/2003, which establishes the scope of price regulation under the jurisdiction of the Ministry of Finance of the Slovak Republic, as amended – available in Slovak (PDF, 203 kB) will be in force.
None of these AMO´s decisions has come into force yet, as the participants to the proceeding can file an appeal (dissolution) against it within the statutory period.
AMO informed about the initiation of administrative proceedings in 2023 through press releases available on AMO´s websites