As part of its in-depth investigation opened on 23 January 2024 (see EUROPE 13334/24), the European Commission announced on Monday 25 March that it had communicated its objections to the German airline Deutsche Lufthansa AG (Lufthansa) and the Italian Ministry of the Economy and Finance (MEF) concerning their plan to acquire joint control of the airline ITA Airways (ITA). The European Commission opened an investigation on 23 January.
The Commission’s preliminary view is that the proposed transaction could affect competition on certain routes in the market for passenger air transport services to and from Italy.
In its view, the merger as initially notified could have the effect of reducing competition on certain long-haul routes between Italy and the United States, Canada and Japan, and could lead to higher prices for consumers.
The institution is also concerned that the merger could place ITA in a dominant position at Milano-Linate airport or strengthen such a position, which could hamper the activities of competitors.
Finally, the Commission has announced that it will examine the possible negative effects of the proposed merger on “routes for which other airlines rely on ITA’s domestic and short-haul network”.
On 8 January this year, Lufthansa presented commitments to implement corrective measures in response to preliminary concerns expressed by the Commission. The Commission did not consider these commitments to be satisfactory and had not consulted market stakeholders on the proposed measures.
Lufthansa and the MEF may decide to submit new corrective measures until 26 April 2024.
Link to case: https://aeur.eu/f/bhv (Original version in French by ÉmilieVanderhulst)