European Commission takes legal action against NS monopoly of Dutch railways

The European Commission has referred the Netherlands to the European Court of Justice for awarding state-owned rail operator NS the concession contract for the country’s most important rail routes. According to the commission, the state failed to ensure proper competition on the Dutch railway network. 

Lack of competition on main rail network in the Netherlands

In 2023, the Dutch government awarded the Nederlandse Spoorwegen (NS) exclusive rights to nearly the entire rail network in the Netherlands from 2025 to 2033. NS is the only rail company in the Netherlands allowed to operate domestically between major destinations such as Amsterdam and Eindhoven or Nijmegen and Utrecht. The problem is that this was done without a tender, which would have given competitors a fair chance to run trains on the main network. 

Competitors such as Arriva and Qbuzz have contested the monopoly for years, and after several warnings from the European Commission that the situation is against European rules, the executive body has decided to take the Netherlands to the Court of Justice. “Competition in the rail market is essential to provide passengers with more attractive and innovative services at lower cost, while keeping public service tasks,” the Commission wrote in a press release. 

NS monopoly of Dutch railways in “passengers’ best interest”

State Secretary of Infrastructure and Water Management, Thierry Aartsen, is disappointed by the European Commission’s decision. "For the Netherlands, the interests of passengers are paramount," said Aartsen. "My predecessor awarded the concession to NS at the end of 2023 because it was in the passengers' best interest." 

The House of Representatives were worried that increased competition would lead to fragmented timetables. However, passengers might disagree, as NS has been named among the five worst rail operators in Europe.

On the other hand, competitors on the Dutch railway are not surprised. According to NOS, Arriva’s CEO Anne Hettinga believes the decision to take the Netherlands to the European courts is logical and “not at all unexpected”. The Netherlands had several opportunities to improve the situation, but the Commission did not see any evidence of desired measures.

A ruling from the European Courts could take months or even years, but if the courts find that the Netherlands is violating the rules, it will have another chance to comply, after which fines will be issued. If the Dutch rail company loses its monopoly of the Dutch rail network, NS will be allowed to continue operating trains under a “crisis concession” while the Ministry of Infrastructure and Water Management conducts the bidding process.