The European Commission (Commission) is investigating the possible overcompensation of the German railway company, Deutsche Bahn AG (Deutsche Bahn) by German federal states of Berlin and Brandenburg. The issue relates to compensation for services provided by Deutsche Bahn in respect of a public service contract for the period 2002-2012. Under this contract, compensation will be paid to Deutsche Bahn at a rate per kilometre travelled, irrespective of the number of tickets sold. This rate is not reviewed when certain train lines are discontinued pursuant to the contract nor when ticket prices are increased. These factors indicate to the Commission that there is a risk that Deutsche Bahn is being overcompensated for these activities. The Commission opened its investigation after receiving a complaint from one of Deutsche Bahn’s competitors. The German authorities and interested third parties have the opportunity to comment before the Commission makes its final decision.