The European Commission has opened formal antitrust proceedings against LG "to investigate whether it limited competition on the rail markets in Lithuania and Latvia by removing a railway track, in breach of EU antitrust rules that prohibit the abuse of dominant market positions," the EU's executive body said in a press release on Wednesday.
"The removal of this track could have prevented customers from using services of other rail operators for the transport of freight between Lithuania and Latvia. The opening of proceedings does not prejudge the outcome of the investigation; it means that the Commission will treat the case as a matter of priority," it said.
Poland's oil group Orlen, which owns Orlen Lietuva, the only crude refinery in the Baltics, has complained to the European Commission over the dismantling of the railway track between Bugėniai, in Lithuania, and Renge, in Latvia.
According to the press release, LG suspended traffic on the railway track in September 2008 and dismantled it a month later. The track has not been rebuilt since then.
"This limits the number of rail connections between Lithuania and Latvia for international freight traffic," the Commission said.
Following a complaint, the EU's executive body carried out inspections at the railway company's premises. The Commission said that its investigation will now focus "on the removal of the railway track and LG's subsequent conduct."
