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European Commission Refers Netherlands to Court Over Railway Competition

The European Commission is taking the Netherlands to the European Court of Justice due to concerns over the lack of competition on the country’s main railway network. The Commission believes that fostering competition in the rail market is crucial for providing passengers with more appealing and innovative services at reduced costs, all while upholding public service responsibilities.

The core of the issue lies in the Dutch government’s decision to directly award the rail passenger transport concession for the years 2025 to 2033 to NS, the state-owned operator, without initiating a competitive tender process. This decision, despite having the support of a majority of Dutch Members of Parliament two years prior, has raised concerns in Brussels.

EU law mandates that companies other than NS should have the opportunity to operate mainline routes, night trains, and cross-border services. The Commission argues that the Netherlands violated EU regulations by neglecting to properly assess whether certain services within the new concession could be effectively provided by commercial operators without the need for public service obligations.

Opposition to the European Commission’s push for increased competition on Dutch railways comes from various political factions within the Netherlands, with Members of Parliament expressing concerns that it may result in a decline in the quality of service for travelers. Furthermore, several regional operators, including Arriva and Qbuzz, have voiced their objections in Brussels against what they perceive as preferential treatment being given to NS. These companies already operate regional services within the Netherlands.