The European Commission on May 17 announced it had let Korean Air know of its "preliminary view" that the carrier's proposed acquisition of Asiana "may restrict competition in the markets for passenger and cargo air transport services between the European Economic Area (EEA) and South Korea".
The Commission said it was concerned that the transaction, if it proceeds, could "reduce competition in the provision of passenger transport services on four routes between South Korea and France, Germany, Italy and Spain" and
have the same effect on "the provision of cargo transport services between all of Europe and South Korea".
As the two biggest Korean airlines, Korean and Asiana together would be "by far the largest carriers of passengers and cargo on these routes and the merger may remove an important alternative for customers", Brussels believes.
"Other competitors face regulatory and other barriers to expanding their services and may be unlikely to exert sufficient competitive pressure on the merged entity," the Commission said, warning that deal "may therefore lead to increased prices or decreased quality of passenger and air transport services".
The announcement came after the Commission in February 2023 started "an in-depth investigation" of whether the acquisition "may restrict competition in the provision of passenger and cargo air transport services between the EEA and South Korea".