Competition inquiry launched into Federal Railways

The competition commission has launched an inquiry into the Federal Railways. It suspects the company has been abusing its dominant market position.

The competition commission has launched an inquiry into the Federal Railways. It suspects the company has been abusing its dominant market position.

The inquiry follows a complaint by Lokoop, a subsidiary of the private rail companies, Mittelthurgaubahn and Südostbahn, and the Mittelthurgau travel agency. Lokoop obtained a contract to distribute parcels for the Post Office in the eastern St. Gallen region, and had asked the Federal Railways to handle the packets at its stations.

But the contract offered to Lokoop by the Federal Railways was a non-negotiable package, which prevented Lokoop carrying out any of the services itself or sub-contracting them out to a third party.

The competition commission suspects the Federal Railways breached a rule forbidding companies which hold a dominant market position from restricting access to the market.

From staff and wire reports