Finnish Competition and Consumer Authority (Kilpailu‐ ja kuluttajavirasto-KKV) proposed that the Market Court imposes a penalty payment of about EUR 7.6 million on national flag carrier operator Finnair Plc for a procedural infringement of competition law, said the KKV in a press release on Monday.
The company allegedly provided materially incorrect, incomplete, and misleading information in response to three requests for information made by the authority under Finnish Competition Act.
The Swedish and Finnish competition authorities have investigated Finnair’s suspected anti-competitive practices, which relates to the company allegedly impeding online travel agents’ ability to advertise discounts to customers searching for Finnair tickets on the internet.
In 2023, Finnair offered and the Swedish Competition Authority (Konkurrensverket) accepted commitments, which prohibit Finnair from restricting how online travel agencies advertise the prices of the company’s airline tickets for travel originating or ending in Sweden.
In the fall of 2023, the KKV initiated an investigation into Finnair’s practices regarding ticket sales for flights departing from and arriving in Finland. The investigation was launched with requests for information.
Under competition law, companies are obliged to provide the authority, at its request, with all the information and documents needed to investigate the contents, purpose and impact of a restriction of competition.
In the fall of 2023, Finnair provided incorrect, incomplete, and misleading information in four responses to the KKV’s requests for information, said the press release.
In the spring of 2024, the KKV conducted unannounced inspection at Finnair’s premises under competition law to get an accurate perception of the suspected anti-competitive practices.
The authority’s evidence of Finnair’s procedural infringement is primarily based on the material collected during the inspection.
According to the authority’s assessment, the infringement committed by Finnair is extensive and serious.
“Finnair's actions have hampered and delayed the investigation. Requests for information are the FCCA's (KKV´s) primary and most commonly used tools in antitrust investigations. To secure effective investigations and use of resources, it is important that companies act diligently and provide the authority with as correct and complete information as possible,” said Timo Mattila, Director General of KKV.
The penalty payment proposed by the KKV for Finnair corresponds to 0.25 percent of the company’s turnover for 2024.
The Market Court will decide on the imposition of the penalty payment.
Meanwhile, Finnair in a press release on Monday said that the KKV considered the information provided by Finnair as incorrect due to misunderstanding.
The Airlines authority will respond to the FKKV's proposed penalty payment in the due course in the Market Court.
- Finnair
- Faces
- €7.6m fine
Source: www.dailyfinland.fi
