Brussels, 04/05/2007 (Agence Europe) - On 3 April, the European Commission opened an in-depth investigation on Travelport's proposed acquisition of Worldspan. Both American companies provide electronic travel distribution services through a global distribution system (GDS). A GDS allows travel service providers to distribute their travel content to travel agencies and ultimately to end-consumers, and enables travel agencies to access and book travel content (such as flights and accommodation).
Travelport and Worldspan are the second and fourth largest on this world market respectively. The other two GDS on this market, where there are only four GDS in all, are Amadeus, the largest, and Sabre, the third largest. The Commission has therefore identified serious concerns that the acquisition by Travelport of Worldspan might lead to reducing the number of competitors from four to three, especially on the markets for the provision of GDS services for travel agencies (airlines, car rental companies, hotels, etc) in the European Economic Area (EEA) and for travel agents in several member states (Belgium, Hungary, Ireland, Italy, Netherlands and the United Kingdom).
The Commission has 90 working days (until 13 September 2007) in which to take a decision on the impact that the acquisition will have on competition in the EEA. (cd)