Brussels, 07/05/2007 (Agence Europe) - On 4 May 2007, the European Commission approved the proposed acquisition of MyTravel Group PLC, a UK travel group, by KarstadtQuelle AG, a German department store and mail order company, active in tour operating via the Thomas Cook Group.
The Commission's investigation found that, given the combined market shares of the parties on the markets for the supply of short-haul and long-haul package holidays in the UK and Ireland, the proposed concentration would not enable the parties to independently raise prices. The parties would in particular continue to experience competition from TUI and First Choice, as well as from numerous small package holiday operators.
The Commission also took into account recent developments in the industry since the last in-depth analysis, carried out in 1999 in the context of the Airtours/First Choice (EUROPE 7557 and 8227 for the Commission's ban on a merger and the subsequent annulment of this decision by the Court of First Instance). The internet and on-line distribution has enabled the smallest package tour operators to have direct market access, as well as travel agents and consumers themselves, in combining several different elements of a holiday. The Commission also concluded that the proposed transaction would not adversely affect access to airlines and accommodation capacity for other tour operators given that the combined market position of the parties in these wholesale markets would not be large enough to seriously affect the ability of smaller tour operators to compete on the market. In view of these findings, the Commission considered that the proposed transaction would not harm consumers in the UK and Ireland, who would continue to have access to package tours at competitive prices. The present decision is without prejudice to the Commission's assessment of the proposed merger between TUI and First Choice, which was notified to the Commission after the notification of the MyTravel/KarstadtQuelle merger. A decision will be taken on the proposed TUI/First Choice merger no later than 16 May 2007. (cd)