ESA calls on Norway to comply with EEA rules on rail services contracts

ESA finds that Norway's decision to directly award a contract for passenger rail services in southern Norway breaches EEA rules.

The EFTA Surveillance Authority (ESA) has today issued a reasoned opinion to Norway for failing to comply with EEA rules on the award of public service contracts for passenger rail services.

The case concerns Norway's decision to award a temporary contract for services on the Sørlandet, Jæren and Arendal lines directly to the state-owned operator Vy, without a competitive tendering procedure. ESA has been in dialogue with the Norwegian authorities on the issue since October 2024 and issued a letter of formal notice in October 2025. Having assessed Norway's response, ESA maintains that the conditions for an exemption from a competitive tendering procedure have not been met.

Under EEA rules, public service contracts for passenger rail services must, as a general rule, be awarded through a competitive tendering procedure. Direct awards are only permitted in limited and exceptional circumstances. This includes instances where changes to the scope of rail services contracts are necessary to optimise public services.

Norway currently organises passenger rail services into five so-called Traffic Packages covering different routes and geographical areas. Traffic Package 1 South covers the Sørlandet, Jæren and Arendal lines. The current contract for these services was awarded to Go Ahead Norge following a competitive tender in 2018 and expires in December 2027. In June 2025, the Norwegian Railway Directorate decided to award a temporary contract directly to Vy for two years, with the possibility of two one-year extensions.

Norway argues that the temporary contract is needed while it reviews the future organisation of the Traffic Packages and assesses whether changes are needed to the scope of public service contracts.

ESA finds that the circumstances presented by Norway in its support, such as analysing the market, assessing the need for public service obligations and preparing future contracts, form part of the ordinary management of the railway sector. These activities do not in themselves constitute exceptional circumstances under the relevant EEA rules.

ESA concludes that Norway has not demonstrated that changes to the scope of rail services contracts were required when the decision to make the direct award was taken. ESA therefore finds that the direct award of Traffic Package 1 South to Vy is not justified under the applicable EEA rules.

ESA also finds that Norway has not demonstrated the existence of any other exceptional circumstances that would justify a departure from the general requirement for competitive tendering.

A reasoned opinion is the second step in formal infringement proceedings against an EEA EFTA State. Norway now has two months to take the necessary measures before ESA may decide to bring the case to the EFTA Court.

ESA's decision can be found here.

About ESA
The EFTA Surveillance Authority (ESA) monitors compliance with the Agreement on the European Economic Area (EEA Agreement) in Iceland, Liechtenstein and Norway, enabling those States to participate in the Internal Market of the European Union.

ESA is independent of the States and safeguards the rights of individuals and undertakings under the EEA Agreement, ensuring free movement, fair competition and control of state aid.