The Lithuanian Competition Council has identified that rules established by the Minister of Transport and Communications in 2020 create barriers for new entrants in the railway freight transport market. These rules, which govern access to congested railway lines, disproportionately benefit LTG Cargo, the dominant player in the market, while discriminating against other freight carriers.

The investigation, initiated in November 2021, was prompted by concerns that certain provisions of the rules might violate the Law on Competition. The regulations require companies to demonstrate their capability to transport freight in overloaded sections of the railway, which LTG Cargo can do more easily than potential new entrants, who face significant financial and operational hurdles.

Additionally, the rules allow capacity allocation based on the willingness to pay higher fees, further disadvantaging new market players. This pricing structure enables LTG Cargo to secure more routes, reinforcing its market position and making it difficult for newcomers to compete effectively.

The European Commission's monitoring has highlighted the challenges faced by new operators in Lithuania, where LTG Cargo remains the sole carrier. Despite the EU's push for competition in the railway sector since 2007, Lithuania has lagged behind other member states in fostering a competitive environment.

As a result of the findings, the Competition Council has mandated the Ministry of Transport and Communications to revise the problematic regulations within three months and has imposed a fine of EUR 40,530. The decision can be appealed in the Vilnius Regional Administrative Court.