More competition on rail
Monopoly Commission calls for the rail group to be split up
October 10, 2024, 1:56 a.m
The rail infrastructure in Germany needs billions in investments. The chairman of the Federal Monopolies Commission is even calling for the relevant division to be separated. He also has concrete suggestions for the structure of bonus payments to rail company managers.
The new chairman of the Monopolies Commission, the economist Tomaso Duso, is calling for a change of course for Deutsche Bahn. “The pay of railway managers should be linked to punctual trains,” Duso told the “Süddeutsche Zeitung”. The short-term bonuses that rail managers receive should be linked to punctuality targets, while the long-term bonuses should depend on the infrastructure being both expanded and maintained, said Duso. And: “The latter in particular hasn’t happened recently.”
He added: “With long-distance trains currently being punctual at 60 percent, one has to say: the bonuses for the railway board should be significantly lower. A goal like punctuality should be more important than others, for example the quota of women in management.”
As an independent body, the Monopolies Commission advises the federal government on competition issues. Duso has been head of the commission for two weeks and is speaking out for the first time.
Duso also wants to “unbundle” Google
At the same time, the railway must be split up. “The infrastructure should be separated from everything else. This is a natural monopoly for which the state must be responsible. More investment and better regulation must be made here,” demands Duso. At the same time, it would be good if there was more competition on this infrastructure. In Duso’s opinion, the infrastructure should always remain oriented towards the state and the common good. “The actual operation of the trains, on the other hand, could possibly be privatized,” added Duso. He also thinks it’s a good idea that the Schenker logistics division was sold: “The state as the owner has no place there.”
Regarding the discussion about the market power of the US company Google, Duso said: “I personally believe that it would be right to unbundle Google.” This is the measure that is most likely to have an impact at the moment. You could spin off parts of Google, such as the Android or Chrome mobile operating system, suggests Duso.
The previous EU Commissioner Vestager also believes that the separation of the advertising business is a necessary measure to create more competition. Duso said: “I agree with that. Google’s core business is to monetize data through advertising, and in this area the most can be achieved through separation.”