Findings of the German Federal Cartel Office on effects of most favoured nation clauses published (Booking.com)
The German Federal Cartel Office (FCO) recently published the findings of its extensive study of the effects of most favoured nation clauses used in online distribution by platforms such as Booking.com. The FCO had prohibited a most favoured nation clause used by Booking.com in 2015 (case B9-121/13) but its decision was repealed by the Higher Regional Court of Düsseldorf in June 2019. The court argued inter alia that the FCO had not sufficiently investigated the effects of most favoured nation clauses on booking platforms, hotels and consumers. The FCO therefore conducted an extensive investigation into these topics and published its findings now. An appeal against the decision of the Higher Regional Court of Düsseldorf is still pending in front of the Federal Court of Justice. The findings of the FCO give some interesting insights into how most favoured nation clauses work which probably are also true for other geographies. (more…)