The Commission asserts that Booking's acquisition of eTraveli will enhance its monopoly on the market for hotel online travel agents (OTAs) and increase costs for both hotels and customers.
Booking did not provide enough remedies to remedy the issues, and as a result, the Commission has disallowed the proposed acquisition, according to EU Helpers.
In addition, Commissioner Reynders noted that Europe is a popular tourism destination that draws millions of visitors each year, highlighting the importance of the Commission's decision to preserve Europe's standing in the world.
Commissioner Reynders added that the merger has major negative impacts and that there aren't any effective remedies.
The Commission notes that after a thorough assessment, it was determined that Booking is the dominant hotel OTA in the European Economic Area, having attained a market share of more than 60% over the past ten years. As a result, the Commission decided to ban Booking's acquisition of eTraveli.
It was also discovered that the merger would have enabled Booking to grow its ecosystem of travel services and acquire a key customer acquisition channel.
The Commission emphasized that, in addition to the previously cited factors, the deal would make it more difficult for rival OTAs to build a client base capable of supporting a hotel OTA operation.
The Commission deemed Booking's suggested remedies insufficient to address the competition issues.
After buying a ticket, Booking would present clients with a selection screen, according to its merger plan. Booking stated that it intends to present hotel offers on this so-called choice screen, enabling users to book lodging right away.
The Commission disagreed, stating that despite this and other remedies put up by Booking, the stated competition issues were still present. Therefore, it has been determined in writing to forbid the planned transaction.