Your Subscription

We would like to ensure that you are still receiving content that you find useful – please confirm that you would like to continue to receive ILO newsletters.





Login
Twitter LinkedIn




Login
  • Home
  • About
  • Updates
  • Awards
  • Contact
  • Directory
  • OnDemand
  • Partners
  • Testimonials
Forward Share Print
Schoenherr Attorneys at Law

Competition office fines Booking.com €0.33 million

Newsletters

28 March 2019

Competition & Antitrust Czech Republic

This article is being republished, as an earlier version contained a factual error regarding the fine amount.

Alongside other EU competition authorities, the Office for the Protection of Economic Competition recently reviewed vertical aspects of online platforms and distribution channels, ultimately fining online booking platform Booking.com Kc8.3 million (approximately €0.33 million) for using most-favoured-nation (MFN) clauses in its contracts with hotels.(1)

In its first-instance decision, the office concluded that Booking.com BV had acted in breach of competition law by including MFN clauses in contracts with short-term accommodation providers (hotels). According to the office, the decision followed an in-depth investigation, during which hundreds of hotels were approached.

Booking.com allegedly entered into vertical agreements with hotels in the Czech Republic between 1 May 2009 and 30 June 2015, which distorted competition in the Czech online booking platform market for hotels and potentially other EU countries.

The restrictive MFN clauses required Booking.com's contractual partners to offer the platform the same or better conditions as regards the price of accommodation and availability of rooms than those available on the hotel's website or on any other online or offline distribution channel used by the hotel. In effect, according to the office, these clauses:

  • restricted competition among existing online websites, as they dissuaded them from offering lower prices or room availability; and
  • prevented new booking platforms from entering the market.

When calculating the fine, the office considered, among other things, the severity of the infringement, its duration and the fact that Booking.com had ended its restrictive practices prior to the beginning of administrative proceedings.

The decision has not yet been published. However, it is hoped to be instructive in terms of how the office examines the conditions under which MFN clauses may be considered as a restriction to competition (and whether the office will follow other EU competition authorities in considering such MFN clauses a hardcore restriction on account of its subject matter and anti-competitive effects).

For further information on this topic please contact Claudia Bock at Schoenherr by telephone (+420 225 996 500) or email (c.bock@schoenherr.eu). The Schoenherr website can be accessed at www.schoenherr.eu.

Endnotes

(1) The decision has not been published yet. The office only issued a respective press release, available at www.uohs.cz/cs/hospodarska-soutez/aktuality-z-hospodarske-souteze/2529-urad-po-rozsahlem-vysetrovani-pokutoval-bookingcom-za-protisoutezni-dohody.html (in Czech). The Booking.com decision is not yet in force and may be appealed.

The materials contained on this website are for general information purposes only and are subject to the disclaimer.

ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription.

Forward Share Print

Author

Claudia Bock

Claudia Bock

Register now for your free newsletter

View recent newsletter

More from this firm

  • Competition authority battles non-cooperative competitors
  • Competition authority imposes fine on retailer for abuse of significant market power
  • Supreme Administrative Court backs gun-jumping decision
  • E-cigarette distributor fined for resale price maintenance
  • City of Prague fined for unfair parking rules

More articles

  • Home
  • About
  • Updates
  • Awards
  • Contact
  • My account
  • Directory
  • OnDemand
  • Partners
  • Testimonials
  • Follow on Twitter
  • Follow on LinkedIn
  • Disclaimer
  • Privacy policy
  • GDPR Compliance
  • Terms
  • Cookie policy
Online Media Partners
Inter-Pacific Bar Association (IPBA) International Bar Association (IBA) European Company Lawyers Association (ECLA) Association of Corporate Counsel (ACC) American Bar Association Section of International Law (ABA)

© 1997-2021 Law Business Research

You need to be logged in to make a comment. Log in here.
Many thanks. Your comment has been sent.

Your details



Your comment or question *