Leo Express suing Czech Railways for over CZK 1 billion in damages

Private railway carrier Leo Express is seeking more than 1 billion crowns in damages from state operator Czech Railways for alleged predatory pricing. Another private railway carrier, RegioJet, is also seeking hundreds of millions in damages for alleged unfair competition.

In November 2016, in response to a complaint by Regiojet, the European Commission opened a formal antitrust investigation to assess the alleged predatory conduct relating to rail passenger services in particular on the Prague – Ostrava route.

The EC last week informed Czech Railways of its preliminary view that the state-owned railway carrier had indeed breached EU antitrust rules by charging prices below costs. The finding prompted Leo Express to roughly double the amount in damages it is suing for.