The Italian Competition Authority opens an Article 101 TFEU enquiry into the Favoured Nation clauses Booking and Expedia imposed on their partner hotels
Following a report lodged by Federalberghi, an association regrouping the majority of Italian hotels, by a decision made on 7 th May 2014 the Italian Competition Authority (ICA) has opened an Article 101 TFEU investigation against two major Online Travel Agencies (OTA), Expedia and Booking ( Online Hotel Reservation ). The complainant reported that some clauses inserted in the agreements concluded by Expedia and Booking with their hotel partners, and namely the Most Favoured Nation (MFN) clauses, breached competition law. The ICA held that the relevant market was the Italian market for online hotel reservation. This was a very concentrated market where Booking and Expedia were respectively the first and second most important operators and together accounted for 75% of the online reservations. The ICA took the view that the contested MFN clauses prevented the partner hotels from offering on their own websites or through competing platforms and other channels better rates and condit...