The UK Office of Fair Trading (OFT) has accepted binding
commitments from Booking.com B.V., Expedia, Inc. and
InterContinental Hotels Group plc, which address concerns that
restrictions on discounting a hotel's room-only accommodation
rate may limit competition between online travel agents (OTAs) and
between OTAs and hotels, and may create barriers to entry into the
market for new OTAs.
The OFT launched a formal investigation in September 2010
following the receipt of information suggesting that vertical
arrangements between OTAs and hotels could be in breach of UK and
EU competition law.
To address the OFT's concerns, Booking.com, Expedia and IHG
agreed to ensure that their existing and future commercial
arrangements allow OTAs and hotels to offer reductions on headline
room-only rates, so long as customers sign up to the membership
scheme of an OTA or hotel and make one undiscounted booking with
the OTA or hotel in question prior to becoming eligible for such
