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Rail Cargo Austria

On 5th December 2012, the Austrian Cartel Court rejected the application for a fine from the Federal

On 5th December 2012, the Austrian Cartel Court rejected the application for a fine from the Federal Competition Authority (BWB) in the area of market abuse of Rail Cargo Austria AG.

Area of market abuse

In its request to the Cartel Court of 13th December 2010 the BWB identified price discrimination for transporting freight (containers) as abusive practice. The preliminary and follow-up transport was higher priced if the main transport was not performed with Rail Cargo Austria. The price was lower for customers who carried out both freight operations with Rail Cargo. Rail Cargo Austria is the only undertaking who offer preliminary and follow-up freight tracking.

Decision of the Cartel Court

The parties invoked that the price increases (85% from 2010 to 2011) were necessary to stop cost shortfall. Consequences of the cost increase were a client change from rails to trucks. The Court experts determined that the product market is not only preliminary and follow-up of rail transport, but also transport with trucks. On this distinct market Rail Cargo Austria has 35% market share. This does not lead to a dominance that could be abused.

The market definition of the Cartel Court does not correspond with the market definition of the BWB. The BWB determined that the market of preliminary and follow-up transport is a separate product market, with its own demand resulting from logistical reasons.