Brussels (AFP)

The European Commission has opened "an in-depth investigation" into the proposed joint venture between the Brazilian Embraer and the American Boeing, the institution said Friday evening in a statement.

This survey is to "assess the plan to create two joint ventures by Boeing and Embraer under the EU Merger Regulation," says the Commission.

She "fears that the operation will reduce competition in the commercial aircraft market".

"We want to ensure that mergers in the commercial aviation sector do not significantly reduce the exercise of effective competition on prices and product development," said the Commissioner for Competition, Margrethe Vestager, quoted in the press release.

In a joint statement, Boeing and Embraer said their plans remained "subject to regulatory approval" and had already been positively assessed by the US authorities.

The groups also pledge to participate in EU investigations. They added that the investigation meant that their initial plan to complete their rapprochement at the end of this year would be postponed to "early 2020".

This announcement comes in a context of strong tension between Americans and Europeans. Washington announced on Wednesday it wants to hit $ 7.5 billion worth of punitive tariff products from Europe, after being given the go-ahead by the World Trade Organization (WTO) in the 15-year legal battle between Boeing and Airbus .

Brussels has promised to respond to US sanctions.

The proposed transaction is to create a joint venture controlled exclusively by Boeing, which would take over Embraer's global business aviation activities (product development, production, marketing, services). A second joint venture jointly controlled by the two companies, which would be responsible for marketing the Embraer KC-390 military aircraft, would also be created.

The Commission "fears that the proposed operation will remove the third largest competitor in the world, Embraer, in the already highly concentrated market of commercial aviation". It "could therefore result in higher prices and reduced choice," she adds.

The transaction was notified to the Commission on 30 August. She has until February 20 to make a decision. At the end of the investigation, if the doubts of the Commission persist, it could request asset disposals.

© 2019 AFP