If a company fails to defend its competition against private carriers before the Commission, it faces a fine of up to ten percent of its annual turnover.
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The Commission opened an investigation in 2016 when RegioJet and Leo Express complained about prices allegedly intended to eliminate competition. In 2011 and 2012, they started offering their services on the backbone line between Prague and Ostrava, where at that time Czech Railways reduced the prices of its tickets below the level of costs.
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According to European Commission Vice-President Margrethe Vestager, competition in transport can push prices down and increase the quality of services, which can benefit clients. “In this case, however, we are concerned that Czech Railways set predatory prices, which is in conflict with EU competition rules,” said Vestagerová.
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The Commission has now given the company room to comment, and its representatives can examine the documents in the proceedings or request a hearing in Brussels. However, if České dráhy fails to persuade the Commission to change its mind, the EU executive may impose a fine on the company in this amount.
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