European Commission to Investigate Lufthansa’s Acquisition of ITA Airways Shares

ITA Airways AZ EI-IFC

The European Commission (EC) has announced that it will conduct an investigation into the Lufthansa Group’s acquisition of shares in ITA Airways.

The investigation is based on EU merger rules, which have raised preliminary concerns about the possibility of reduced competition on multiple routes to and from Italy. Lufthansa Group and ITA Airways compete on several routes to and from Italy.

The investigation will particularly focus on competition on routes between Italy and Central Europe, America, Canada, Japan, and India. Additionally, it will scrutinize how ITA Airways is treated within the joint ventures of the Lufthansa Group with United Airlines and Air Canada, as well as the enhancement of a dominant position at the Milan Linate Airport.

This transaction was notified to the European Commission on November 30, 2023, and although Lufthansa Group had submitted commitments on January 8 of this year to address the preliminary concerns, they were deemed insufficient in terms of scope and effectiveness. A final decision is expected by June 6.

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