Commission Accepts Commitments From Deutsche Bahn To Address Margin-Squeeze Concerns

On Dec. 18, 2013, the European Commission announced that it accepted binding commitments from Deutsche Bahn (DB) to resolve concerns that its pricing system for traction current (the electricity used to power trains) in Germany favored DB-owned entities over competitors.

The Commission formally opened its investigation in June 2012, following unannounced inspections at the premises of DB and its German subsidiaries in 2011. The Commission raised concerns that the criteria for discounts offered by DB Energie (which is Germany's sole provider of traction current) could only be fulfilled by DB's subsidiaries. The Commission found that the criteria may have adversely affected the profitability and competitiveness of other operators in the markets for rail freight and long distance passenger transport.