The Finnish Competition and Consumer Authority (KKV) proposes that the market court impose a penalty fee of around 7.6 million euros on the airline Finnair to be paid.
According to KKV’s press release, Finnair has provided substantially incorrect, incomplete and misleading information to three clarification requests made by the agency under the Competition Act.
According to the press release, Swedish and Finnish competition authorities have investigated Finnair’s suspected anti-competitive conduct, in which Finnair would have intervened in the pricing of flight tickets of online travel agencies.
In 2023, Finnair has committed to comply with the commitments imposed by the Swedish Competition Authority, which prohibit Finnair from restricting the advertising method of online travel agencies in air ticket prices on flights departing from and arriving in Sweden.
In the fall of 2023, KKV started an investigation to find out Finnair’s procedure for selling tickets for flights departing from and arriving in Finland. As a result of the investigation, a request for clarification was made, and companies have an obligation under the Competition Act to provide the necessary information.
According to KKV’s press release, Finnair gave incorrect, incomplete and misleading information in its four responses to KKV’s clarification requests in autumn 2023.
In the spring of 2024, KKV conducted a surprise inspection of Finnair’s premises in accordance with the Competition Act, the purpose of which was to get a true picture of the suspected anti-competitive conduct. KKV’s evidence of Finnair’s procedural violation is mainly based on the material collected during the inspection. According to the agency’s assessment, this is an extensive and serious procedural violation.
“Finnair’s actions have complicated and slowed down the investigation of the matter. Requests for clarification are KKV’s main and most commonly used means of investigating suspected restrictions on competition. In terms of effective investigation activities and the use of resources, it is important that companies act carefully and provide the agency with as truthful and comprehensive information as possible”, CEO of KKV Timo Mattila says in the announcement.
Finnair denies
Finnair disputes KKV’s views in all respects. According to Finnair’s press release, it has acted transparently during the investigations and has not provided incomplete or misleading information to KKV.
According to Finnair, in its inspection in the spring of 2024, KKV found documents that it considers to be in conflict with the information and documents provided by Finnair. According to Finnair, a misunderstanding occurred during the inspection, which is why KKV considers that the information provided by Finnair to KKV was incorrect.
“KKV’s investigation has been unnecessary, as Finnair stopped steering measures against travel agencies in all countries with the commitment given to the Swedish Competition Authority. The misunderstanding that occurred could have been avoided if KKV had investigated the matter carefully,” the release says.
According to the release, Finnair will respond to KKV’s penalty payment proposal in due course in the market court.
Update 17.11. at 3:00 p.m.: Added Finnair’s response to KKV’s announcement.