They passed a bunch of rules requiring the separation of the track ownership from the train ownership which means any private company can come in, lease some track time, lease some trains, and become a train operator overnight.
Similar rule changes have led to tremendous improvements in Italy for example, which had the unfortunate (?) side effect of bankrupting the national plane carrier Alitalia (not sure if it’s really unfortunate considering it was heavily subsidized by the govt, much like plane travel throughout the world, where govts inevitably subsidize plane travel by bailing out plane companies on a regular basis, and even the companies that don’t need bailing out benefit because they share costs with highly unprofitable companies essentially running on govt bailouts).
High-speed rail became dominant in the next decade and I think it was the cynical kind of of ‘competition’ that if there is an affordable option and an astronomically expensive option (HSR is often 2x or 3x the cost of flying) why should the provider offer the affordable one? (It’s like how a car dealer has no M or L cars but they have rows and rows of unsold XL, XXL, and XXXL SUVs)