Deutsche Bahn files lawsuit against Federal Network Agency's long-distance ruling

The role of DB Infrago

The lawsuit is directed at the specific design of the ruling. In railway circles, concerns are voiced that the Federal Network Agency's requirements favour the market entry of foreign competitors without sufficiently taking into account the financial burdens and obligations of Deutsche Bahn as the network operator.

This also involves the Bahn subsidiary DB Infrago, which operates the rail network and is to allocate future capacities to various providers. Deutsche Bahn argues that the rules envisaged in the ruling make it harder to refinance the network and could thus jeopardise long-term investment in the infrastructure.

From the Network Agency's perspective, the ruling pursues the goal of enabling more competition on the rails and thereby improving the offering for travellers. The authority had conducted the proceedings with the participation of the affected companies and the antitrust authorities and justified its decision with the requirements of railway regulatory law.

Italo in the spotlight

Italo had made clear in earlier statements that it considers the German market attractive and intends to focus on the main corridors mentioned — Munich-Cologne-Dortmund and Munich-Berlin-Hamburg. The provider already operates high-speed services in Italy and sees Germany as one of the few remaining growth markets in Europe.

Observers view Deutsche Bahn's move as a signal in an ongoing political debate about the future of long-distance rail services in Germany. While proponents of an open market expect more competition and cheaper tickets, critics warn of a weakening of the state-owned group and, indirectly, of infrastructure financing.

The court responsible will now have to examine whether the Federal Network Agency's ruling is formally and substantively lawful. Until a decision is made, the ruling remains in effect in principle; however, individual orders can be suspended via interim legal relief.

Outcome and possible consequences

Regardless of the outcome of the proceedings, Italo's planned market entry is scheduled for no earlier than 2028. By then, both the entrepreneurial prerequisites on the new provider's side and the regulatory framework in Germany will need to be further fleshed out.

In the industry, the upcoming court dispute is also seen as a litmus test for the Federal Network Agency's independence. The authority has repeatedly emphasised in the past that its decisions are based exclusively on technical criteria of railway regulatory law.

For travellers on the corridors mentioned — Munich-Cologne-Dortmund and Munich-Berlin-Hamburg — a potential new provider would only become relevant in the medium term. Until then, Deutsche Bahn remains the dominant provider on these routes, although pressure is growing from long-distance bus services and an intensifying political debate about cheaper tickets.

The lawsuit also highlights Deutsche Bahn's dual role as a market player and as the parent group of the infrastructure company DB Infrago. This construct has been criticised for years on the grounds that it can foster conflicts of interest between competition and network responsibility — a point that is also likely to play a role in the ongoing proceedings.