The European Commission (EC) has launched an in-depth investigation into the agreement by Lufthansa to buy a 41% stake in Italy's ITA Airways against an investment of 325 million euros over the 2023-2024 period, Brussels said on Tuesday.
The development takes to phase two the antitrust examination of the planned deal, which began in November after receipt of formal notification by the Italian Treasury and the German carrier.
In light of the data gathered, the EC considers that "the transaction could reduce competition" on "several short- and long-haul routes".
In particular, the Commission claims the agreement between ITA and Lufthansa "could create or strengthen the dominant position" of the new company "at Milan-Linate airport" and so make it "more difficult for rivals to provide passenger air transport services to and from" the Milan hub.
The EU executive now has until June 6, 2024 to take a final decision.
On January 9 Lufthansa announced it had made concessions to theEC in a bid to secure approval for the deal to acquire a stakein fully State-owned ITA Airways, which replaced the loss-making former flag-carrier Alitalia in 2021.
However, the European antitrust services reported found the new commitments to be insufficient.
EU Commission Vice-President in charge of Competition, MargretheVestager, said in a statement that the in-depth investigation aims "to assess the transaction in more detail and to ensure that the acquisition of ITA does not reduce competition in short- and long-haul traffic and does not lead to higher prices, lower availability or lower quality of air passenger transport services to and from Italy".
ALL RIGHTS RESERVED © Copyright ANSA