WRITTEN QUESTION No. 1521/98 by Karin RIIS-JØRGENSEN to the Commission. Competitive position of private bus companies operating between the regions of Denmark
Date: 1998-05-07
Institutions: European Parliament, RIIS-JOERGENSEN
Subjects: Denmark, bus, competition law, private sector, public sector, restriction on competition, road transport, transport infrastructure

C 50/44

Official Journal of the European Communities

EN

22.2.1999

The Commission regrets these events and hopes that the Italian legislation, chiefly Act No 1089 of 1 June 1939,
which has protected the exceptional heritage of the peninsula for more than sixty years now, will be applied
strictly.

(1999/C 50/061)

WRITTEN QUESTION P-1521/98

by Karin Riis-Jłrgensen (ELDR) to the Commission

(7 May 1998)

Subject: Competitive position of private bus companies operating between the regions of Denmark

Does the Commission believe that it is in accordance with the EU(cid:146)s competition rules for the Danish law
regulating the bus industry to allow private bus companies to be prevented from establishing new long-distance
bus routes and from expanding traffic on already existing routes between the various regions of the country in
order to shield publicly owned railway and bus companies from competition?

With reference to Section 4 of the law regulating the bus industry, the Passenger Transport Board at its latest
meeting (18 March 1998) turned down a series of applications from private bus companies wanting to establish
new long-distance bus routes between Jutland and Zealand (Copenhagen) via the new bridge over the Great Belt.

The same provision is used by the Passenger Transport Board to impose restrictions on private bus companies
seeking to expand traffic on already authorized long-distance bus routes by, for example, limiting the number of
daily departures and fixing routes between terminuses (including what ferry companies may be used across the
Kattegat and whether the Great Belt can be used as an alternative route). The result is that, in certain situations, the
companies in question cannot serve the number of passengers wanting to travel by express bus between the
various regions of the country.

It seems that the Passenger Transport Board(cid:146)s use of Section 4 of this legislation is not based on an assessment of
possible competition between Danish State Railways and the private express bus companies, since the
competitive position in this area has not been investigated in Denmark. Reliance is placed on statements by
Danish State Railways who are represented on the decision-making body.

Answer given by Mr Kinnock on behalf of the Commission

(11 June 1998)

The Commission considers, as a matter of principle, that Community competition rules should be respected by all
transport operators including public undertakings. However, certain undertakings entrusted with the operation of
services of general economic interest may be granted special or exclusive rights under certain conditions
established in Article 90 EC Treaty.

Such restrictions to the access to the market might be specially justified when authorities impose on these
undertakings public service obligations which are compensated through public funding. In addition Community
law establishes (1) that where the authorities of the Member States decide partly or wholly to maintain a public
service obligation, and where this can be done in more than one way, each capable of ensuring, while satisfying
similar conditions, the provision of adequate transport services, the authorities shall select the way that is least
costly to the community. The adequacy of transport services shall be assessed having regard to the possibility of
having recourse to other forms of transport and the ability of such forms to meet the transport needs under
consideration.

The compatibility of the Danish regulations and current practices concerning regular bus services and railway
systems with Community competition rules would have to be determined on a case by case basis. The
Commission has not been provided with information which indicates violation of these rules.

(1) Article 3 of Regulation (EEC) 1191/69 of the Council of 26 June 1969 on action by Member States concerning the obligations inherent in the
concept of a public service in transport by rail, road and inland waterway as modified by Council Regulation (EEC) 1893/91 of 20 June 1991.