Bonn, 13 June 2025

Press Release

Monopolies Commission Warns: Special Rail Fund Must Be Used for a Real New Start

In its 10th Sector Report Railways published today, the Monopolies Commission warns against squandering a historic opportunity: The planned special infrastructure fund to modernise the German rail network must not be allowed to become bogged down in old structures, but must be used as a lever for a genuine new start.

‘Money alone is not enough. We must now seize the opportunity to implement a real change of course at the railways,’ says Prof Tomaso Duso, Chairman of the Monopolies Commission. ‘Fundamental, structural changes are needed to ensure that the special fund reaches the rail network in a cost-efficient manner and do not fizzle out in non-transparent financial flows.’

The Monopolies Commission therefore recommends:

• Earmarked funds for modernisation and digitalisation: The federal government should use the special fund for the railways exclusively for future-oriented measures. In addition to modernising the rail network, it should particularly promote the digitalisation of processes and infrastructure. This is because greater efficiency in processes will reduce track access charges for all railway companies and thus ticket prices for customers.
• Transparency and expert control: A control and monitoring centre, with the participation of experts from the sector, should control the flow of funds. It will check whether the funds are being used cost-effectively and whether clearly defined federal objectives are being achieved. This ensures that the investments create the greatest possible benefit for the common good.
• Structural unbundling: The Monopolies Commission welcomes the fact that the new federal government wants to further unbundle DB InfraGO AG and reorganise the Supervisory Board and Management Board, but above all provide them with more specialist expertise. In the long term, the recommendation remains to completely separate the ownership of the railway network and operations. Until then, the minimum requirement is that all responsibilities relating to the railway infrastructure are transferred to DB InfraGO AG. In addition, the contracts between DB AG and DB InfraGO AG, which regulate the transfer of profits and control, should be terminated.

According to the Monopolies Commission, there is a risk that public funds will not reach the rail network as intended, but will indirectly benefit other areas of the DB Group through cross-subsidisation. The financial flows between DB AG and its subsidiary InfraGO AG are considered to lack transparency. The DB Group's dual role is problematic: on the one hand, it operates the rail network via DB InfraGO AG and, on the other, it uses the rail network for its own transport companies. This structure makes fair competitive conditions more difficult.

In addition to this structural disadvantage, there is another competitive disadvantage for other providers: the rapidly rising track access charges. Prior to the decision on the special infrastructure fund, the German government had channelled additional funds to DB InfraGO AG via an increase in equity in order to push ahead with the renovation of the rail network. The underlying issue was that the debt brake barred the financing of investments through construction subsidies. However, this step and the high interest rates on the equity capital have caused track access charges to skyrocket by up to around 30 per cent in the last five years, depending on the segment. In addition, it is not yet clear how high the charges will be in 2026. This makes it even more difficult for rail competitors to survive in the market.

The Monopolies Commission therefore recommends a temporary reduction in the return on equity at DB InfraGO AG in order to slow down track access charges. In addition, the federal government should tighten incentives in order to achieve higher quality and punctuality through the railway infrastructure.

‘Only if the special fund and the reduction in track access charges are designed in a competition-oriented way for the railways will passengers and freight transport benefit from lower prices, more innovation and better quality,’ emphasises Prof. Tomaso Duso.

The following documents are now available for download:

Press release (in English)

Sector Report in full text (in German language only)

23 April 2025

Press Release: Defence Spending Needs a Shake-Up, Says Monopolies Commission

In light of the European Union's "Readiness 2030" goal, the Monopolies Commission is calling for an urgent transformation of defence procurement to remove bureaucratic barriers while safeguarding competition. With €800 billion of planned defence investment at stake, Europe cannot afford procurement processes that stifle innovation and delay the delivery of innovative capabilities. The independent advisory body to the German government calls for cutting red tape, prioritising European solutions and creating fast-track pathways for innovative technologies - all while ensuring robust competition safeguards remain in place.

"Competition is not just a peacetime luxury - it is the fundamental pillar of Europe's economic order and the engine that drives innovation and efficiency in defence procurement as well," said Professor Tomaso Duso, Chair of the Monopolies Commission. "Without a robust competition framework that opens up opportunities for start-ups and innovation in strategic enabler technologies such as AI, cybersecurity and unmanned systems, we risk creating entrenched monopolies that will hamper our security capabilities for decades to come."

In its statement, the Commission presents specific recommendations for ensuring a competition-friendly procurement approach, based on three core demands:

1. Stronger European coordination and interoperability
   Member States must align and coordinate their procurement strategies to bundle demand, create economies of scale, and prevent fragmentation of the European defence industrial base. Defence systems should be designed with interoperability as a fundamental requirement, not an afterthought, enabling seamless coordination across EU military forces.
2. Simplification and acceleration of procurement procedures
   Current procurement processes often favor established contractors and exclude innovative solutions. By implementing more flexible, innovation-friendly formats, procurement authorities can tap into the agility and creativity of small and medium-sized enterprises (SMEs). This would diversify the supplier base and accelerate technological advancement.
3. A balanced approach between urgency and innovation
   While immediate security needs may require reliance on proven suppliers, the Commission recommends implementing dual sourcing strategies and competitive innovation programs in parallel. This two-track approach ensures both short-term readiness and long-term technological superiority.

The Monopolies Commission further stresses that the allocation of public funds must be firmly rooted in the rule of law. Public procurement and state aid rules should be simplified, but not abandoned. Regulatory authorities must be equipped to effectively detect and address anti-competitive conduct, corruption, and collusion—without impeding innovation.

“Transparent procedures are essential to ensure that the defence sector operates in an innovative, efficient, and publicly accountable manner,” Professor Duso concluded.

Download Full Statement in English 

The German government has appointed Prof. Dr. Rupprecht Podszun as a member of the Monopolies Commission for a term from 1 July 2024 to 30 June 2028.

New Commission member Rupprecht Podszun has held the Chair of Civil Law, German and European Competition Law at Heinrich Heine University Düsseldorf since 2016 and is a director of the Institute for Competition Law. From 2013 to 2016, he held the Chair of Civil Law, Intellectual Property and Commercial Law at the University of Bayreuth. He has been President of the Academic Society for Competition Law (ASCOLA) since 2023. His research focuses on antitrust and competition law, in particular with a focus on the media and internet industry, economic activity by the state and interfaces with intellectual property law, law and sustainability. In his successful podcast "Bei Anruf Wettbewerb", he has been providing information on competition policy backgrounds and developments together with the former Chairman of the Monopolies Commission, Prof. Dr. Justus Haucap, for many years.

Prof. Dr. Rupprecht Podszun succeeds Prof. Dr. Jürgen Kühling, who will retire from the Commission on 30 June 2024 after two terms. Prof. Kühling was a member of the Monopolies Commission from July 2016 to June 2024 and its Chairman from September 2020 to June 2024. During his membership, the Commission dealt with important issues including the digital and socio-ecological transformation. These involved the handling of digital ecosystems, data access and the Digital Markets Act, as well as competition problems in healthcare markets and the distortion of competition in international trade due to subsidies granted to state-owned and private companies in China. The Monopolies Commission's reports on the regulated railways, energy, telecommunications and post sectors should also be mentioned, as well as its opinion on the online activities of public broadcasters. The Commission would like to express its special thanks to Prof. Kühling for his commitment to competition.