BRUSSELS, March 25 Reuters Lufthansa39;s bid for a minority stake in Italian rival ITA Airways could harm competition and lead to higher prices, EU antitrust regulators said on Monday, ramping up pressure on the German carrier to come up with stronger remedies.

The European Commission said the deal threatened competition on shorthaul routes between Italy and Central European countries, as well as on longhaul routes between Italy and the United States, Canada and Japan. It would also strengthens ITA39;s dominant position at Milan39;s main airport.

The removal of ITA as an independent airline may have negative effects on competition in these already concentrated markets, the Commission said in a statement.

The routes giving rise to potential concerns represent a small share of total short and longhaul routes and passengers served by both parties and their joint venture partners, and the potential concerns do not affect the vast majority of routes that ITA operates, it added.

The statement confirmed a Reuters story earlier this month. Lufthansa and the Italian government can now put forward new remedies by April 26.

Lufthansa wants to buy a 41 stake in stateowned ITA for 325 million euros 351 million as part of a capital increase.

The deal highlights the airline industry39;s attempts to consolidate, with British Airwaysowner IAG seeking to buy out Spain39;s Air Europa.

Lufthansa39;s remedies to address EU concerns could be similar to those in a Korean airline deal…