Written by 11:54 am Antitrust, News and Events, Uncategorized

German Federal Cartel Office (FCO) prohibits the “best value” provisions of Booking.com

In December 2015 the Bundeskartellamt (FCO) prohibited booking.Com Deutschland GmbH from making use…

In December 2015 the Bundeskartellamt (FCO) prohibited booking.Com Deutschland GmbH from making use of its “best price” clauses and ordered the inn reserving portal to delete the clauses from its contracts and general terms and stipulations latest by 31 January 2016.

Under the said provisos, inns were obliged to constantly offer Booking.com their most minimal room costs, greatest room limit and best reserving and cancellation conditions accessible on all online and disconnected from the net booking channels (so called “wide” best price clause). During the investigation against Booking.com, the organization had offered to present a changed ‘best price’ provision. Under the proposal, Booking.com permitted the inns to offer their rooms less expensive on other inn booking entryways yet at the same time endorsed that the costs which they offer all alone inn sites may not be lower than on Booking’s inn gateway (these are known as “narrow” best price clause). The Bundeskartellamt decided that both the statements are conflicting with German competition law.

(Source:http://globalcompetitionreview.com/reviews/72/sections/249/chapters/2920/germany-federal-cartel-office/)

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