The European Commission on Wednesday blocked an attempt by Ryanair to acquire rival Irish carrier Aer Lingus, marking only the second merger prohibition by the EU executive in four years.
The Commission, confirming a Reuters report from May 30, decided the combination would destroy competition at Dublin Airport where Ryanair, Europe's biggest budget airline, and Aer Lingus are based.
"The acquisition would have combined the two leading airlines operating from Ireland which currently compete vigorously against each other," the European Union's top competition watchdog said in a statement.
"The Commission concluded that the merger would have harmed consumers by removing this competition and creating a monopoly or a dominant position on 35 routes operated by both parties."
But EU Competition Commissioner Neelie Kroes said the EU's top antitrust body could not force Ryanair to sell its 25 percent stake in Aer Lingus. Brussels lawyers and Commission watchers had expected such a divestiture. The stake gives Ryanair veto power over some decisions by the rival carrier.
Ryanair's offer, originally valued at 1.48 billion euros ($2 billion), becomes only the 20th prohibition among more than 3,000 cases reviewed by the European Union executive since 1990.