The National Commission for Markets and Competition (CNMC) has penalised Renfe, Deutsche Bahn and several railway companies from both groups with 75.6 million Euro in fines for hindering the liberalization of freight transport by rail. In many cases, this has made it difficult to reach agreements to make the transportation of vegetables and fruits by rail economically viable.
The CNMC estimates that their practices have affected trade between different countries of the European Union, with agreements that "placed the infringing companies as clients and preferential suppliers against their competitors, limiting competition between the Renfe Group and the Deutsche Bahn Group."
The following infractions have been reported in a statement issued by the CNMC:
"A single and continuous infringement of Articles 1 of the Competition Act (LDC) and Article 101 of the Treaty on the Functioning of the European Union (TFEU), due to agreements and concerted practices restricting competition by two companies of the Renfe group (Renfe Operadora and Renfe Mercancías) and several companies of the Deutsche Bahn group (Transfesa, Transfesa Rail, PIF, Hispanauto, Semat, DHIB, DB ML and DB SR Deutschland).
A single and continuous infringement of Articles 2 of the LDC and 102 of the TFEU, due to engaging in abusive commercial discrimination as regards the transport of goods by rail in Spain affecting, at the very least, the railway companies which are members of the Association of Private Railway Companies (AEFP).
In terms of turnover, the Renfe Group and the Deutsche Bahn Group have respectively become the first and second largest rail freight operators in Spain and together account for more than 80% of freight transport by rail in Spain."
Agreements
The CNMC's note states that, in the case of the first conduct sanctioned, (agreements to restrict competition from other companies), it has been established that the various agreements reached by Renfe Group companies (Renfe Operadora and Renfe Mercancías) and several Deutsche Bahn Group companies (Transfesa, Transfesa Rail, PIF, Hispanauto, Semat, DHIB, DB ML and DB SR Deutschland) had an impact on competition. Through these alliances, these groups, which theoretically should have competed against each other, were able to maintain the status quo before the liberalization of the rail freight sector in Spain almost without any changes.
The penalised companies created a series of links between them that allowed them to position themselves as privileged customers and suppliers, for example, in the rental of locomotives (traction equipment) or of the areas where vehicles are stored for loading on freight trains, as well as in other activities essential for this type of transport.
As a result of these agreements, a situation was created in which the only competitor of Renfe that had traction (Transfesa - owned by the Deutsche Bahn Group) sublet the service to Renfe and to another company of the Deutsche Bahn (DB) Group. In this way, Renfe was positioned as the only company with its own traction capacity in the Spanish market.
In the case of the Deutsche Bahn Group (DB), the leading rail freight operator at a European level, it did not use its own traction in the international transport of goods by rail to or from Spain, despite having its own locomotives in Spain (through Transfesa Rail). But it chose to give part of them to the Renfe Group, even though the latter owned more than enough locomotives to cover its needs in the affected markets, thus reducing their supply for others.
Abuse of dominant position by Renfe
The note adds that, in the case of a second conduct sanctioned, the CNMC has accredited an abuse of Renfe Group's (Renfe and Renfe Mercancías) position. The firm allegedly discriminated against other railway companies, particularly the members of the Association of Private Railway Companies (AEFP). The conditions offered to these operators were different from those agreed with the companies of the Deutsche Bahn Group (Transfesa, PIF, Hispanauto and DB SR Deutschland).
In this way, Renfe offered preferential treatment to DB SR Deutschland, Transfesa, PIF and Hispanauto when providing railway traction services. Furthermore, Renfe did not apply penalties to the Transfesa Group in the event that it cancelled rail traction services contracted for the transport of goods. A penalty that applied to other railway companies that tried to compete with both groups.
As a result, a 49.9 million Euro fine has been imposed on Renfe Operadora and Renfe Mercancías.
A 10.5 million Euro fine has also been imposed on the following companies of the Deutsche Bahn Group: Transportes Ferroviarios Especiales, S.A., Transfesa Rail, S.A., Pool Ibérico Ferroviario A.I.E., Hispanauto Empresas Agrupadas A.E.I.E., Sociedad de Estudios y Explotación de Material Auxiliar de Transportes, S.A., Deutsche Bahn Ibérica Holding, S.L., DB Mobility Logistics AG, and DB Schenker Rail Deutschland AG.
The CNMC has ruled the conduct of another company of the Deutsche Bahn Group (DB Schenker Rail International Limited) as prescribed and has filed the proceedings against it.
However, the CNMC has accredited a single and continuous infringement of Article 2 of Law 15/2007 (of 3 July) on the Defence of Competition, as well as of Article 102 of the Treaty on the Functioning of the European Union, thus imposing a 15.1 million Euro fine on Renfe Operadora and Renfe Mercancías of which both will be liable.
In its statement, the CNMC recalled that this resolution cannot be appealed via administrative proceedings, although a judicial-administrative appeal may be filed at the Audiencia Nacional within two months from the day following its notification.
Source: hortoinfo.es