NS fined nearly €41m by cartel watchdog over Limburg concession scandal

The Dutch anti-cartel body ACM has fined Dutch railway firm NS almost €41m for breaking competition law during the tender process to provide regional rail services in Limburg in 2014.

The ACM’s investigation, in part based on internal emails and other documents, found that the state-owned company ‘had submitted a loss-making bid in order to obstruct its competitors’.

‘Over the past 20 years, regional tender processes in the Dutch public transport sector have resulted in increased passenger volumes and in better service,’ said ACM chairman Chris Fonteijn in a statement. ‘Passengers ultimately benefit from better service. ACM believes a substantial fine is in order here.’

In addition to submitting a loss-making bid, NS staff also used confidential information obtained from a former director of rival operator Veolia, which operated the regional rail services in Limburg at the time of the regional tender process.

Disadvantage

The NS also put its competitors at a disadvantage by responding slowly and providing incomplete answers in response to their requests for access to certain services and facilities at train stations, the ACM said.

NS made net profit of €212m in 2016 and paid €78.7m of that to the treasury as dividends.

Thursday’s ACM ruling is not the end of the affair. This autumn, the NS and six senior members of staff will face charges of industrial espionage in connection with the tender process.