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

The EFTA Surveillance Authority (ESA) has today sent a letter of formal notice to Norway for breaching EEA rules that require passenger rail services contracts to be awarded through open and competitive procedures.

EEA rules on public transport services set out clear requirements for how countries must award contracts for passenger rail operations. The main principle is openness to competition. When awarding a public service contract, they shall as a main rule be awarded by a competitive tender, ensuring that all interested operators have a fair and equal opportunity to bid for these services.

Direct awards without competition are permitted only in clearly defined circumstances. Such exceptions must be strictly justified and must comply with the conditions set out in the regulation, as confirmed by case law.

In October 2024, Norway proposed granting Vy, a government-owned transport company, a temporary contract to operate the Sørlandet, Jæren and Arendal railway lines in southern Norway from 2027, without launching a competitive tender. The proposal argued the direct award was needed to ensure the continuity of rail services while national authorities reviewed the future organisation of passenger transport. In June 2025, Norway confirmed the decision, deciding on awarding a two-year contract with an option to extend. The lines are currently operated by Go-Ahead Norge, which won the existing contract through competition in 2018.

ESA has assessed the case and considers that the conditions for an exemption from competition have not been met. By directly awarding the public service contract without valid exceptional justification, ESA concludes that Norway has breached its obligations under the EEA Agreement.

A letter of formal notice is the first step in an infringement procedure against an EEA EFTA State. Norway now has two months to express its views before ESA decides whether to take the case further.

Read ESA's decision here .

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