Rotten Company

České dráhy CZK 274.797 million predatory-pricing fine for obstructing rail liberalisation

Company: České dráhy, a.s.

Summary

The Czech competition authority found that České dráhy abused its dominant position by using predatory pricing in tenders for long-distance passenger rail services on the Plzeň–Most and Pardubice–Liberec routes. The authority concluded that bids were set at levels that did not cover avoidable costs, foreclosing competitors during railway liberalisation. A final second-instance fine of CZK 274,797,000 was imposed in August 2019. ÚOHS later reported that the Supreme Administrative Court definitively confirmed the authority's decision in 2024. Sources: https://uohs.gov.cz/cs/informacni-centrum/tiskove-zpravy/hospodarska-soutez/2650-definitivni-pokuta-pro-ceske-drahy-za-narusovani-liberalizace-cini-temer-275-milionu-korun.html and https://uohs.gov.cz/cs/hospodarska-soutez/zneuziti-dominantniho-postaveni/vyznamna-rozhodnuti-v-oblasti-zneuziti-dominantniho-postaveni.html