DB Cargo, a wholly owned subsidiary of the state-owned Deutsche Bahn AG (DB AG), was the subject of an in-depth investigation by the Commission that began in January 2022, following a complaint from a competitor. The investigation focused on four key areas:
- The profit and loss transfer agreement between DB AG and DB Cargo, which has been in place since 2012.
- The provision of intra-group services by DB AG to DB Cargo at potentially favourable terms.
- The advantageous group financing conditions of loans.
- The partial coverage of remuneration for civil servants by the German Federal Railway Fund, who were previously employed by Deutsche Bundesbahn and are currently allocated to DB Cargo.
The Commission found that the profit and loss transfer agreement constituted State aid but noted that it will be discontinued from 1 January 2025. The other three measures were not considered to involve State aid, as they were determined to be in line with market conditions and part of ordinary business transactions.
The aid, assessed under the Guidelines on Rescue and Restructuring Aid, was found to be compatible with the internal market. The restructuring plan for DB Cargo includes measures to streamline operations and reduce costs, aiming for long-term viability by the end of 2026. Germany has committed to divesting certain activities and assets of DB Cargo to mitigate competition distortions caused by the State aid.
The European Commission also acknowledged the environmental benefits of rail freight as a lower-emission alternative to road transport, contributing to sustainable logistics.
The non-confidential version of the decision will be available under case number SA.50952 on the Commission’s competition website once confidentiality issues are resolved. Updates on State aid decisions can also be found in the Competition Weekly e-News and the Official Journal.