On Wednesday 17 March, the European Commission announced that it had sent a statement of objections to South Korean company Korean Air expressing concerns about the potential effects of Korean Air’s proposed acquisition of South Korean company Asiana. The proposed merger was notified on 13 January.
In this preliminary view, the context of which is an in-depth investigation opened on 17 February, the Commission expresses its concerns that the transaction may reduce competition in the provision of passenger transport services on four routes between South Korea and France, Germany, Italy and Spain.
The Commission also considers that the merger could restrict competition in the market for the provision of freight transport services between Europe and South Korea.
The European Commission believes that the merger could remove an important alternative for consumers. Asiana is a direct competitor of Korean Air.
Furthermore, the Commission considers it unlikely that competitors could exert sufficient competitive pressure on the merged entity due to competitors facing barriers to expanding their services in these markets.
This statement of objections does not prejudge the outcome of the European Commission’s investigation. The Commission’s final decision is expected before 3 August 2023.
Korean Air has the opportunity to reply to the Commission’s statement of objections, to consult the Commission’s case file and to request an oral hearing.
Link to case: https://aeur.eu/f/6y8 (Original version in French by Emilie Vanderhulst)