The European Commission has informed the Netherlands, in a preliminary finding, that the rules for allocating capacity on the main national rail network may violate EU competition rules. Brussels suspects that the system gives the state-owned rail operator Nederlandse Spoorwegen (NS) an advantage at the expense of companies seeking to operate international passenger trains.

The European Commission has sent the Netherlands a letter of formal notice, the first formal step in an investigation into a possible violation of European competition rules by a member state.

The case concerns the rules governing the allocation of capacity on the Netherlands’ main rail network. Brussels has reached the preliminary conclusion that these rules could distort competition in the market for international rail passenger transport services.

At the center of the case is Nederlandse Spoorwegen (NS), the Dutch state-owned rail operator and the country’s largest passenger transport company. The Commission suspects that NS may be given priority over competitors when network capacity is insufficient to meet all route requests.

Access to Routes: The Key Issue

In rail transport, available network capacity is one of the most important resources. An operator cannot simply introduce new trains if the infrastructure is congested. It needs train paths—that is, time slots and routes allocated in the timetable.

In 2025, the Netherlands was required to open its domestic passenger rail market to competition. This means that other rail companies can also operate on the main lines of the Dutch network, competing with NS.

However, prior to the market opening, the Dutch authorities adopted rules under which NS, as the holder of the main concession contract, is given priority over competitors if the network cannot meet all capacity requests. These rules have been in effect since 2024.

The European Commission preliminarily considers that the system may create an uneven playing field between NS and competing operators, particularly in the case of international passenger services.

Routes to Belgium, Germany, France, Austria, the United Kingdom, and Switzerland

NS is wholly owned by the Dutch government. Its subsidiary NS Reizigers provides public transportation on the main lines of the Dutch rail network under a concession contract for the period 2025–2033.

Another subsidiary, NS International, operates international services in cooperation with other historic rail operators in Europe, including SNCB, the Belgian state-owned operator; Deutsche Bahn, the German rail operator; ÖBB, the Austrian operator; SBB, the Swiss operator; and Eurostar.

International services from the Netherlands include connections to Belgium, Germany, France, Austria, the United Kingdom, and Switzerland.

According to the Commission, if a new or competing operator cannot secure sufficient routes, it cannot offer attractive, frequent, or competitive services. In international passenger transport, access to capacity influences schedules, connections, frequencies, prices, and service quality.

Possible Abuse of a Dominant Position

The European Commission preliminarily considers that the Dutch rules could allow NS to maintain or strengthen its dominant position in the market.

The case concerns not only the conduct of a company but also measures adopted by a Member State that may protect or strengthen the position of a dominant company.

The legal basis invoked by the Commission is Article 106 of the Treaty on the Functioning of the European Union, in conjunction with Article 102. Article 106 requires Member States not to adopt or maintain measures contrary to the Treaties and competition rules, while Article 102 prohibits the abuse of a dominant position.

The letter of formal notice does not mean that an infringement has already been established. The document informs the Member State concerned of the Commission’s preliminary concerns and allows it to review the file and submit comments.

The Netherlands has two months to respond

The Netherlands has two months to respond to the European Commission’s observations. If, after reviewing the response, Brussels determines that there is sufficient evidence of an infringement, the Commission may require the Dutch government to remedy the identified competition issues.

There is no legal deadline for concluding the investigation. Its duration will depend on the complexity of the case and the cooperation of the Dutch authorities.

Opening the rail market does not automatically mean real competition

The Dutch case illustrates just how difficult it can be to truly open up the European rail market. Liberalization does not merely entail the formal right of companies to enter the market, but also effective access to infrastructure, capacity, routes, and schedules.

In a congested network, the priority given to the incumbent operator can determine who, in practice, has a real chance to compete.

For passengers, competition on international routes can mean more options, better services, more frequent service, and downward pressure on prices. For the European Union, the development of international rail transport is also linked to climate goals, as trains can replace some medium-haul flights.

However, these goals depend on a market in which operators can access the network on fair terms.

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