The antitrust regulators of the European Union issued a warning on Friday regarding Booking Holdings’ proposed acquisition of ETraveli, which could potentially increase the market position of the U.S. company in the online travel agency industry and result in higher costs for hotels.
According to a statement from the European Commission, the hotel OTA market has limited competition and Booking seems to be unaffected by competition from other OTAs, hotels, and end-customers.
Related: Spain Goes After Internet Giant Booking.com
The EU competition watchdog has expressed concern that the deal could strengthen Booking Holdings’ negotiating position with hotels, and potentially reduce demand for lower-cost sales channels, resulting in increased costs for both hotels and customers.
The decision on the deal is set for Aug. 30 by the European Commission.
In November 2021, Booking declared its intention to acquire Etraveli, a private equity firm owned by CVC Capital Partners. Etraveli owns Gotogate and Mytrip brands and a company called TripStack, which provides airline integration services.
