Bundeskartellamt prohibits Deutsche Bahn from extending its local public transport activities in Saarland

The Bundeskartellamt has prohibited the planned project of Deutsche Bahn AG (DB AG) to acquire a 30 per cent participation in the local transport company Kreis-Verkehrsbetriebe Saarlouis GmbH (KVS) via its affiliate company Regionalbus Saar-Westpfalz GmbH (RSW). KVS mainly provides regular local transport services in the Saarland administrative district of Saarlouis.

It is assumed that the proposed concentration would lead to a further strengthening of DB's dominant position in local public transport in Saarland. RSW operates ten regional bus routes in Saarland as well as several other bus routes at district and municipal level, and thus holds a market share of more than 40 per cent. DB Regio holds almost a 90 per cent stake in the local passenger rail services. If the concentration were to proceed the DB concern would gain a substantial market share. It is not expected that the merged companies would enter into competition with each other when tendering for concessions or contracts for local public transport services after the expiry of present transport licences or contracts. Consequently, the intensity of competition in the local transport sector, which is rather low anyway, would be further reduced; this is particularly true since without the KVS there would be one company with its own concession less which could serve as a partner for new local transport companies outside the district wishing to enter the market.

The President of the Bundeskartellamt, Dr Böge, stated: "Particularly in markets with a high level of concentration and a low level of competition, residual competition needs to be protected under merger control and access to these markets needs to be kept open due to the increasing liberalisation also in the transport sector."