German rail operator Deutsche Bahn (DB) has been found to have “abused its dominant position” in a victory for third-party distribution platforms.
Deutsche Bahn has been told to change its commercial practices to comply with competition rules by the German Federal Cartel Office, also known as the Bundeskartellamt. DB said it would appeal against the decision as it would have “far-reaching financial consequences” for the rail operator.
Rail booking platforms such as Trainline and industry group EU Travel Tech have been calling for action to make it easier for third parties to sell tickets on DB trains.
Andreas Mundt, president of the Bundeskartellamt, said: “The services of third-party mobility platforms making integrated route planning possible for passengers are not conceivable without including Deutsche Bahn’s offers and traffic data.
“Deutsche Bahn is therefore subject to abuse control under competition law and has to fulfil special obligations towards rival platforms. This specifically concerns data sharing, bans on advertising, vertical price specifications, far-reaching bans on discounts and the withholding of different commissions for third-party platforms.
“Without effective enforcement under competition law, the business models of mobility platforms cannot function in competition with Deutsche Bahn.”
Mundt added that a settlement with DB could not be reached despite “lengthy negotiations”. This meant that an “official decision ordering Deutsche Bahn to stop engaging in such practices is needed”.
Bundeskartellamt is imposing several measures on DB, including allowing third party distributors to use “DB-specific terms” in its advertising without any contractual restrictions imposed by the rail operator.
Mobility platforms will be able to use their own discount campaigns, bonus points or cashback programmes when selling DB tickets. The train operator will also have to pay third-party platforms based on “minimum competition law standards for carrying out the booking and payment processes” when selling DB tickets.
New EU rules requiring the provision of real-time data will be “supplemented” to ensure that mobility platforms’ access to data is “non-discriminatory and comparable” to DB’s own access to this data.
Jody Ford, CEO of Trainline, called the move a “crucial step in the right direction for German rail travellers”.
“Having recognised DB’s anti-competitive behaviour over many years, this decision provides not only the framework so that millions of people will access the benefits of digital innovation and choice but also sets a vital precedent for the ticketing sector in Germany and Europe,” added Ford.
DB plans to appeal
DB said the decision amounted to the “subsidisation of online platforms” and would require it to “make numerous changes to its sales model”.
In a statement, the company argued that it “would force DB to remunerate online platforms for the sale of DB tickets, even if this does not offer any added value for DB due to DB's own very well-developed sales channels”.
“The decision of the Federal Cartel Office has far-reaching financial consequences for DB,” added the statement. “The substantial additional burden resulting from the required changes to the sales model will not be offset by corresponding savings or additional revenues.
“With bahn.de and the DB Navigator app, DB itself has high-performing and effective sales platforms which it wishes to invest in and expand. The decision will place additional financial burdens on DB, which in the worst case will lead to higher ticket prices and lower investment.”
DB’s appeal against the decision will be heard at Düsseldorf Higher Regional Court.