European Commission begins investigation into Boeing-Embraer joint venture

The European Commission (EC) has opened an in-depth investigation to assess the proposed joint venture by Boeing and Embraer. Under the EU merger regulation, the commission is concerned that the transaction may reduce competition as regards commercial aircraft. Regarding its reasoning, the commission has said that the removal of Embraer as the third largest global competitor in the commercial aircraft market could lead to “higher prices and less choice” for customers. The joint venture would be solely controlled by Boeing as it would take over Embraer’s global commercial aircraft business (product development, production, marketing, services). Recently, Boeing and Embraer’s strategic