German rail regulator forces Deutsche Bahn to open long-distance routes to Italian rival Italo from 2028

The decision

On 17 July, the Bundesnetzagentur confirmed its preliminary ruling from late June, requiring DB InfraGO to cap the share of capacity allocated to a single operator on congested long-distance corridors at 60 to 75 percent. The exact percentage will be set by DB InfraGO when it draws up the 2028 network timetable in 2027. The rule guarantees that at least one competitor can run services alongside Deutsche Bahn, which currently holds a 95 percent market share in German long-distance rail. The agency said it had examined all arguments from the railway infrastructure advisory board, the Federal Cartel Office and the Monopolies Commission but stood by its June proposal.

We are convinced that our decision will get competition in long-distance rail moving.

Italo's entry

The decision clears the way for the Italian high-speed operator Italo to launch services in Germany from spring 2028. Italo plans to invest 3.6 billion euros, deploying 30 high-speed trains for 56 daily connections. Initial routes will link Munich–Frankfurt–Cologne–Dortmund on an hourly schedule and Munich–Berlin–Hamburg every two hours. Italo had filed a complaint with the BNetzA over the way scarce track capacity is allocated, seeking improved conditions for new entrants and long-term framework agreements of up to 15 years, though those are unlikely before 2031.

Opposition from states and DB

Several federal states warned that the new rule could harm regional services and rural connectivity. Brandenburg's transport minister Robert Crumbach argued that the lucrative metropolitan axes would be further expanded while the regions were left behind. He insisted that infrastructure must be stabilised first, with massive investment in the network, signal boxes and digitalisation, before additional competition is introduced. The state's formal submission warned that the cross-subsidisation of underused long-distance connections by revenue from profitable routes would disappear, risking service reductions in rural areas.

The lucrative metropolitan axes will be further expanded, while the regions in the area will be left behind.

Bavaria's transport minister Christian Bernreiter feared that regional rail (SPNV) would suffer precisely where several railway companies compete for lucrative slots. Hamburg expressed concern that stops or entire routes around the Hanseatic city could be cut, overloading local transport at peak times.

In contrast to the BNetzA, I do fear that regional rail will suffer precisely where several railway companies will compete for lucrative slots in the future.

Deutsche Bahn itself said it would examine the decision thoroughly. Its infrastructure arm DB InfraGO, in a submission seen by dpa, accused the regulator of "durchgehende Verfahrens- und Aufklärungsfehler" (pervasive procedural and investigative errors) and argued there was no legal basis for regulatory intervention, as its track allocation had never been legally challenged before.

Support from competitors

Competitor associations welcomed the ruling. Mofair, representing rival operators, said the targeted decision protected the interests of local and freight traffic. The freight railways association Die Güterbahnen stated that the decision enabled more competition in long-distance rail without disadvantaging other traffic types.

What happens next

DB InfraGO must incorporate the new competition clause into its terms of use. The rule takes effect with the 2028 network timetable, to be drawn up in 2027. Deutsche Bahn can challenge the decision at the Cologne administrative court, which could delay Italo's planned market entry. The regulator acknowledged that the decision could trigger a transformation in long-distance passenger rail.