Input study on vertically integrated rail undertakings in the European Union : executive summary

This study assesses whether vertically integrated rail undertakings (VIUs) across EU Member States comply with the principles of transparency, non-discrimination, and fair competition as outlined in Directive 2012/34/EU and its amendments. VIUs refer to corporate structures where a single entity controls both the infrastructure manager (IM) and one or more railway undertakings (RUs), which can pose potential risks to market fairness. The study identifies 11 VIUs operating in countries such as France, Germany, Italy, Austria, Hungary, among others. It analyses their governance structures, separation of functions, financial transparency, and potential for anti-competitive behaviour. Key findings include instances of distorted competition, such as preferential access to infrastructure for internal operators, lack of transparency in financial flows, and insufficient functional separation between IMs and RUs. Regulatory practices and oversight mechanisms vary significantly across countries. The report concludes with recommendations to strengthen governance rules, enhance regulatory audit powers (Article 56(12)), and ensure operational independence of infrastructure managers to foster a competitive and open Single European Railway Area.