The Italian Competition Authority closes proceedings for abuse of dominance in the rail sector by accepting commitments from the incumbent operator
Introduction With a decision adopted on 13 November 2008 the Italian Competition Authority (AGCM) has closed proceedings against Ferrovie dello Stato (FS) and Rete Ferroviaria Italiana (RFI) for abuse of dominant position in the market for railway transport by the approval of a set of behavioural commitments offered by the FS and RFI to resolve the competition concerns raised by the AGCM (Autorità Garante della Concorrenza e del Mercato, 13 November 2008, Case A389 - Rail Traction Company/Rete Ferroviaria italiana-Ferrovie dello stato, Provvedimento n° 17327, Chiusura istruttoria; Bollettino n° 43/2008).The abusive conduct complained of consists in the non-application of the so-called K-2 discount, which, under some circumstances, railway undertakings are entitled to on the charge access to the rail network. The factual and regulatory background In order to modernize the ageing Italian rail network, the installation of a new signalling system (SCMT) has been decided. This system consis...