---
kind: "section"
citation: "49 U.S.C. § 10707"
title: "49"
title_heading: "Transportation"
number: "10707"
heading: "Determination of market dominance in rail rate proceedings"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/49/10707"
units:
  - "Subtitle IV — Interstate Transportation"
  - "Part A — Rail"
  - "Chapter 107 — Rates"
  - "Subchapter I — General Authority"
---

# §10707. Determination of market dominance in rail rate proceedings

- (a) In this section, “market dominance” means an absence of effective competition from other [rail carriers](/usc/49/10102.md?p=5) or modes of [transportation](/usc/49/10102.md?p=9) for the [transportation](/usc/49/10102.md?p=9) to which a [rate](/usc/49/10102.md?p=7) applies.
- (b) When a [rate](/usc/49/10102.md?p=7) for [transportation](/usc/49/10102.md?p=9) by a [rail carrier](/usc/49/10102.md?p=5) providing [transportation](/usc/49/10102.md?p=9) subject to the jurisdiction of the [Board](/usc/49/10102.md?p=1) under this part is challenged as being unreasonably high, the [Board](/usc/49/10102.md?p=1) shall determine whether the [rail carrier](/usc/49/10102.md?p=5) proposing the [rate](/usc/49/10102.md?p=7) has market dominance over the [transportation](/usc/49/10102.md?p=9) to which the [rate](/usc/49/10102.md?p=7) applies. The [Board](/usc/49/10102.md?p=1) may make that determination on its own initiative or on complaint. A finding by the [Board](/usc/49/10102.md?p=1) that the [rail carrier](/usc/49/10102.md?p=5) does not have market dominance is determinative in a proceeding under this part related to that [rate](/usc/49/10102.md?p=7) or [transportation](/usc/49/10102.md?p=9) unless changed or set aside by the [Board](/usc/49/10102.md?p=1) or set aside by a court of competent jurisdiction.
- (c) When the [Board](/usc/49/10102.md?p=1) finds in any proceeding that a [rail carrier](/usc/49/10102.md?p=5) proposing or defending a [rate](/usc/49/10102.md?p=7) for [transportation](/usc/49/10102.md?p=9) has market dominance over the [transportation](/usc/49/10102.md?p=9) to which the [rate](/usc/49/10102.md?p=7) applies, it may then determine that [rate](/usc/49/10102.md?p=7) to be unreasonable if it exceeds a reasonable maximum for that [transportation](/usc/49/10102.md?p=9). However, a finding of market dominance does not establish a presumption that the proposed [rate](/usc/49/10102.md?p=7) exceeds a reasonable maximum.
- (d)
  - (1)
    - (A) In making a determination under this section, the [Board](/usc/49/10102.md?p=1) shall find that the [rail carrier](/usc/49/10102.md?p=5) establishing the challenged [rate](/usc/49/10102.md?p=7) does not have market dominance over the [transportation](/usc/49/10102.md?p=9) to which the [rate](/usc/49/10102.md?p=7) applies if such [rail carrier](/usc/49/10102.md?p=5) proves that the [rate](/usc/49/10102.md?p=7) charged results in a revenue-variable cost percentage for such [transportation](/usc/49/10102.md?p=9) that is less than 180 percent.
    - (B) For purposes of this section, variable costs for a [rail carrier](/usc/49/10102.md?p=5) shall be determined only by using such [carrier](/usc/49/13102.md?p=3)’s unadjusted costs, calculated using the Uniform Rail Costing System cost finding methodology (or an alternative methodology adopted by the [Board](/usc/49/10102.md?p=1) in lieu thereof) and indexed quarterly to account for current wage and price levels in the region in which the [carrier](/usc/49/13102.md?p=3) operates, with adjustments specified by the [Board](/usc/49/10102.md?p=1). A [rail carrier](/usc/49/10102.md?p=5) may meet its burden of proof under this subsection by establishing its variable costs in accordance with this paragraph, but a shipper may rebut that showing by evidence of such type, and in accordance with such burden of proof, as the [Board](/usc/49/10102.md?p=1) shall prescribe.
  - (2) A finding by the [Board](/usc/49/10102.md?p=1) that a [rate](/usc/49/10102.md?p=7) charged by a [rail carrier](/usc/49/10102.md?p=5) results in a revenue-variable cost percentage for the [transportation](/usc/49/10102.md?p=9) to which the [rate](/usc/49/10102.md?p=7) applies that is equal to or greater than 180 percent does not establish a presumption that—
    - (A) such [rail carrier](/usc/49/10102.md?p=5) has or does not have market dominance over such [transportation](/usc/49/10102.md?p=9); or
    - (B) the proposed [rate](/usc/49/10102.md?p=7) exceeds or does not exceed a reasonable maximum.

## Source credit

(Added Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 815.)

## Notes

### Editorial Notes

### Prior Provisions

Provisions similar to those in this section were contained in section 10709 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Prior sections 10707 and 10707a were omitted in the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Section 10707, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1380; Pub. L. 96–448, title II, § 207, Oct. 14, 1980, 94 Stat. 1907; Pub. L. 103–272, § 4(j)(21), July 5, 1994, 108 Stat. 1369, related to investigation and suspension of new rail carrier rates, classifications, rules, and practices.

Section 10707a, added Pub. L. 96–448, title II, § 203(a), Oct. 14, 1980, 94 Stat. 1901; amended Pub. L. 103–272, § 4(j)(22), July 5, 1994, 108 Stat. 1369, related to zone of rail carrier flexibility.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.