The European Commission on Monday prohibited the American digital platform Booking.com from acquiring the Swedish eTraveli, stating that it would strengthen its position in the market for price comparison services and flight bookings.
Booking holds over 60 percent of the share in the European digital accommodation booking market, the Commission announced.
The Swedish company eTraveli provides price comparison services for airline tickets and flight bookings.
– Booking’s acquisition of eTraveli would strengthen Booking’s dominant position in the online travel agency market and would likely increase costs for hotels, and possibly for consumers – said EU Justice Commissioner Didier Reynders.
Tourism stakeholders, including competitors and hotels, expressed concerns during the EC investigation that the merger of Booking with eTraveli could limit competition and increase prices.
Booking proposed to display offers from hotels on competing platforms to customers who purchase airline tickets on its site. The displayed alternatives were to be selected by the search service owned by Booking, KAYAK.
The Commission assessed the proposal as non-transparent and ineffective, adding that it would be difficult to monitor.
– Thanks to our decision to block the merger, the options for European hotels and travelers for service offerings and travel bookings will no longer be limited – said Reynders.
Brussels claims that this will preserve the incentive for competitive prices and innovation in ‘a significant segment of the travel sector’.
Booking can initiate legal proceedings against the EC’s decision, notes the dpa agency.
