BRITAIN’S OFFICE OF FAIR TRADING (OFT) is investigating Ryanair’s near-30% stake in Aer Lingus.

The regulator is investigating whether the stake allows Ryanair to influence its rival’s commercial policy and distort competition, according to Bloomberg.

The share purchase was completed about four years ago.

It was previously investigated by the European Commission which said that the Commission does not have the power to address minority shareholdings, but that individual member states could apply their own national competition law to such stakes.

The Commission had prohibited Ryanair from entirely taking over the Aer Lingus shareholding in October 2006.

Ryanair CEO Michael O’Leary said he was surprised to learn of the OFT’s investigation and said the airline has asked its lawyers to liaise directly with the OFT to bring “this unnecessary query” to an early conclusion.

An Aer Lingus spokesperson told the PA that the airline welcomed the investigation and would cooperate in full with the OFT.

The OFT said it would initially determine if it has jurisdiction  to review the share acquisition as a relevant merger.