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ARTICLE · 24 MARCH 2014

OFT Closes The Hotel Online Booking Investigation

Van Bael & Bellis
Van Bael & Bellis
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The Office of Fair Trading closed its hotel online booking investigation with no finding of infringement.

United KingdomAntitrust/Competition Law
Van Bael Bellis
Van Bael Bellis
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On 31 January 2014, the Office of Fair Trading ("OFT") closed its hotel online booking investigation with no finding of infringement. The investigation concerned restrictions on discounting by online travel agents ("OTAs"). Specifically, the OFT had expressed concerns about clauses under which Expedia and Booking.com had agreed not to offer rooms at rates lower than the rates set day-by-day by hotel companies, namely ILPL and IHG in the case of Booking.com and only ILPL in the case of Expedia (see VBB on Competition Law, Volume 2013, No. 8, available at www.vbb.com).

The OFT's decision of 31 January 2014 confirmed that restrictions on discounting had as their object the limitation of price competition between OTAs and between OTAs and hotels' own online platforms and were, furthermore, likely to increase barriers to entry for new OTAs. The investigation was closed after the parties submitted commitments according to which in summary (1) Expedia and Booking.com will

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