Finnair Faces €7.6 Million Penalty Proposal After FCCA Says Airline Misled Investigators

Key Takeaways

• Penalty Proposal Issued: The Finnish Competition and Consumer Authority (FCCA) has asked the Market Court to impose a €7.6 million penalty on Finnair for providing incorrect, incomplete, and misleading information during an antitrust investigation.
• Broader Probe Continues: The case is part of a wider Finnish–Swedish investigation into whether Finnair restricted online travel agencies from advertising discounted fares.
• Four Faulty Responses Identified: Finnair allegedly submitted inaccurate information in four separate responses to official requests for information in autumn 2023.
• Evidence Found in Inspection: A spring 2024 unannounced inspection at Finnair’s premises yielded the evidence underpinning the FCCA’s findings.
• First Case of Its Kind: This is the first time the FCCA has proposed a penalty specifically for supplying misleading information, representing 0.25% of Finnair’s 2024 turnover.

Deep Dive

Finnair is facing a big setback in a long-running antitrust investigation after Finland’s competition authority accused the airline of repeatedly providing misleading and incomplete information during the early stages of the case.

The Finnish Competition and Consumer Authority (FCCA) announced that it is asking the Market Court to impose a penalty of around €7.6 million, saying the airline’s responses to official information requests in 2023 were materially inaccurate and disrupted the agency’s ability to do its job.

If imposed, it would be the first penalty of its kind in Finland for supplying incorrect or incomplete information during a competition investigation.

A Case That Has Spanned Two Countries

The penalty request stems from a broader investigation carried out by both Finnish and Swedish competition authorities into whether Finnair restricted online travel agencies from advertising discounted fares for its flights.

In Sweden, the matter was partially resolved back in 2023, when Finnair agreed to commitments that prevent the airline from limiting how agencies advertise ticket prices for trips starting or ending there. Finland’s investigation continued, focusing specifically on tickets for flights departing from or arriving in the country.

To launch its inquiry, the FCCA issued several requests for information in autumn 2023—straightforward, standard tools used to build a complete picture of the suspected behavior. According to the agency, Finnair’s replies were anything but straightforward.

The FCCA says the airline supplied incorrect, incomplete, and misleading information in four separate responses.

A Surprise Inspection Paints a Clearer Picture

Concerned by the discrepancies, the FCCA carried out an unannounced inspection at Finnair’s premises in spring 2024. It was during this visit, the authority says, that investigators gathered the evidence needed to determine just how serious the procedural breach was.

The agency now describes the infringement as both extensive and serious.

Timo Mattila, the FCCA’s Director General for Competition, said the airline’s actions undermined the investigation from the start:

“Finnair's actions have hampered and delayed the investigation. Requests for information are the FCCA'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.”

A Quarter of the Maximum Allowed Penalty

Since 2021, the FCCA has had the power to propose penalty payments for procedural violations, up to one percent of a company’s global turnover. The agency’s proposed fine for Finnair equals about 0.25 percent of its 2024 turnover.

The Market Court will decide whether to impose the penalty.

Only one other company has faced similar procedural enforcement. In May 2024, the FCCA proposed a penalty against healthcare provider Attendo for obstructing an inspection; the Market Court imposed a €1.5 million payment in that case, which is now being reviewed by the Supreme Administrative Court.

Finnair’s case, however, marks the first time the FCCA has sought a penalty specifically for providing false or misleading information, not for obstructing inspectors once they arrived.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.