A statement said the investigation had highlighted concerns that the acquisition could reduce competition on short-haul routes from Italy to Central Europe and on long-haul routes between Italy and the U.S., Canada and Japan.

In addition, the Commission was concerned that the transaction would "create or strengthen ITA's dominant position" at Milan-Linate airport and make it more difficult for its competitors to provide services from the airport.

In response, Lufthansa stated that it would submit remedies to the Commission's concerns by the April 26 deadline and that it remained confident that ITA would become "part of the Lufthansa group family this year," a view echoed by MEF.

First announced in January 2023, Lufthansa's proposed €325 million ($351 million) acquisition of the Italian airline, currently owned by MEF following the bankruptcy of its predecessor Alitalia, would give the German airline group a 41% stake in the flag carrier.

While the Commission's concern over the partial acquisition may temporarily delay the closing of the deal, it is unlikely to deal a lasting blow to the deal, which could resurface with concessions similar to those in the acquisition of Asiana Airlines by Korean Air, recently approved by the EU after the Korean flag carrier agreed to give up parts of the business.