The case concerned the proposed acquisition by the Irish-based airline Ryanair of its competitor Aer Lingus. Both companies offer scheduled air transport services. Their operations overlap in particular at Dublin airport. The proposed acquisition, whereby Ryanair acquires sole control over Aer Lingus. The Commission's investigation confirmed that there are substantial barriers to entry which would make difficult any new entry to the routes where the activities of the merging parties overlap.

Comments and conclusions by the EC competition services
After an initial examination of the notification the Commission concluded that the notified concentration fell within the scope of the Merger Regulation and that, even taking into account commitments offered by the notifying party on 19 November 2006, subsequently modified on 14 December 2006, the proposed concentration raised serious doubts as to its compatibility with the common market and the functioning of the EEA Agreement.

Accordingly, on 20 December 2006, the Commission decided to initiate proceedings in accordance with Article 6(1)(c) of the Merger Regulation. On 22 February 2007, the Commission, in agreement with Ryanair, decided to extend the procedure by 20 days in accordance with Article 10(3), second subparagraph, of the Merger Regulation.

After having examined the commitments, as modified by Ryanair on 3 May 2007, the Commission concluded that they did not sufficiently address the competition concerns identified in the Statement of Objections and that therefore, the concentration would significantly impede effective competition on the common market.

Hence, the decision concludes that the notified concentration would significantly impede effective competition on the identified routes to/from of Ireland and declares the concentration incompatible with the Common Market and the EEA Agreement.

More information
The EC have publsihed their Final report of the Hearing Officer in Case COMP/M.4439 — Ryanair/Aer Lingus. (Pursuant to Article 15 and 16 of Commission Decision 2001/462/EC, ECSC of 23 May 2001 on the terms of reference of Hearing Officers in certain competition proceedings — OJ L 162, 19.6.2001, p. 21) (2008/C 47/04). The official text was published on the 20 February 2008 in the official Journal of the European Union (C47).