Finland’s competition authority wants a €7.6 million penalty against Finnair, accusing the state-backed carrier of giving misleading answers in an investigation into how it limited the visibility of cheaper fares on online travel agencies. The Finnish government is fining an airline it majority-owns for misleading… itself.
- The government of Finland owns approximately 56% of the airline.
- By law, that cannot go below 50% without a vote of Parliament.
- Standard & Poors treats Finnair as a government-related entity for credit purposes.
Finland’s Competition and Consumer Authority alleges that Finnair allegedly misled its own government during a competition investigation. A state regulator is asking the Market Court to authorize the state to fine the state for the state’s national airline giving the state incomplete or incorrect information.
The government asked Finnair for information in autumn 2023 as part of probe into whether the airline restricted how online travel agencies could market or advertise its fares. The regulator says Finnair’s responses were “materially incorrect, incomplete, and misleading.”
They raided Finnair’s offices in spring 2024. After examining internal material, the authority concluded the misleading-information problem was serious enough to justify a standalone penalty.
The airline argues it never intended to mislead the regulator, that it had already ended the disputed online travel agency practices after making commitments to Swedish authorities the previous year, and that the Finnish investigation was unnecessary or based on a misunderstanding. Nonetheless, if the penalty is imposed, the Finnish state will transfer money from a mostly publicly-owned airline to the public’s coffers.
(HT: Loyalty Lobby)
state of idiots
Good riddance. Not a fan of Finnair ever since they stranded me in HEL. I’ve seen enough Moomin for one lifetime. Never again.
@Don G — Naw, Finland and the Finnish people are great. Their airline, like many major companies, can and do harm consumers, and I think this outcome is a decent attempt at a correction.
So 56% of the fine moves from one part of the government to another….
BUT
The remaining 44% comes out of the non-government owned shareholders’ value pot.
So in fact the Finnish government has just made 44% of €7.6 million, so €3.34m.
Not an entirely pointless exercise Gary.