Findings of the German Federal Cartel Office on effects of most favoured nation clauses published (Booking.com)

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The FCO had prohibited a most favoured nation clause used by Booking.com in 2015 (case B9-121/13) but its decision was repealed by the Higher Regional Court of Düsseldorf in June 2019.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…)

Czech Competition Authority fines Booking.com

Following an inquiry into vertical aspects of online platforms and distribution channels, the Czech Office for the Protection of Economic Competition recently found that online travel agency (OTA) Booking.com had included most-favoured-nation (MFN) clauses in its agreements with hotels in the Czech Republic between 1 May 2009 and 30 June 2015. According to the Office, these clauses distorted competition on the Czech online booking platform market for hotels and possibly also other EU countries and therefore constituted a breach of Czech competition law. The Office imposed a fine of CZK 8.3 million.

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