French discount rail operator Ouigo has been expanding rapidly with a network of its trains on popular routes within Spain, but now the Spanish government has accused it of "price dumping" to unfairly undercut other companies, including RENFE, the Spanish operator owned by the government.
Ouigo is a subsidiary of state-owned French national rail operator SNCF, which is also less than happy with RENFE's expansion into France. Under EU law, national rail networks must be open to fair competition from private operators, both local and from across borders.
In Ouigo's case, the Spanish Transport Minister is complaining to the National Markets and Competition Commission about price policies he says are "tremendously unfair." Ouigo has been offering long-distance high-speed rail fares for as little as €9 one-way and has a €5 flat rate for children under 14.
Ouigo recently announced a spate of new routes reaching deep into southern Spain as reported here a week ago.
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