The European Commission opened an in-depth investigation on Wednesday 16 November to assess the proposed acquisition by Booking Holdings (Booking) of Flugo Group Holdings AB, a company operating under the trading name of eTraveli.
The Commission is concerned that the proposed transaction would allow Booking to strengthen its position in the market for online travel agencies in the accommodation sector.
Both Booking and eTraveli are active in the market for the provision of online travel agency services, one specialising in accommodation and the other in air travel. Booking is also active in the market for metasearch services (KAYAK).
The Commission is concerned that the operation will: - lead to a multiplication of barriers to entry and the expansion of competing online travel agencies; - strengthen network effects by raising barriers to entry, which could reduce competition in the market for online travel agency services and lead to higher costs for hotels and other accommodation providers and higher prices for end customers.
Booking may have the ability, as well as a potential economic incentive, to engage in foreclosure strategies against competing online travel agencies in the air travel market, the Commission said.
Link to the case: https://aeur.eu/f/43b (Original version in French by Lionel Changeur)