BRUSSELS

The European Commission on Monday announced that it blocked Europe’s leading online travel agency Booking’s acquisition of Swedish competitor eTraveli.

EU Commissioner for Justice Didier Reynders, who is temporarily in charge of the competition portfolio as well, revealed at a news conference that the European Commission prohibits the merger because it would allow “Booking to strengthen its dominant position on the market for hotel online travel agencies.”

“Our investigation shows that the acquisition would lead to higher costs for hotels and possibly for consumers” while their choices get more limited because online travel agencies act as intermediaries between hotels and guests, charging a fee for booking, Reynders said.

He added that the European Commission found Booking’s proposals to address the concerns were “insufficient.”


Booking initially offered €1.63 billion ($1.74 billion) for eTraveli.


According to the European Commission’s estimates, online travel agencies handle over €100 billion worth of transactions every year in the EU, and online hotel bookings are “the largest and most profitable segment” of the industry with over €40 billion turnover.


Maintaining fair competition in the EU’s internal market is one of the few exclusive competencies of the EU. It allows the European Commission to decide on antitrust rules, authorize mergers, and fine companies for breaching EU law.