EU Court upholds ban on Booking's acquisition of Etraveli Group
Booking Holdings has failed to overturn the European Commission's decision blocking the approximately €1.6 billion acquisition of Etraveli Group. The ruling further confirms that Brussels will scrutinise how large digital platforms can leverage market power from one travel segment into another.
On 9 September, the General Court of the European Union dismissed Booking's action against the European Commission and upheld the prohibition on the acquisition of the Swedish company Etraveli Group, one of Europe's leading online flight ticket intermediaries.
The Commission blocked the transaction in September 2023 on the grounds that Booking's acquisition of Etraveli would further cement its dominant position in the European online hotel reservations market. According to data from the Commission at the time, Booking held a market share of over 60 percent in that segment.
Flights as a pathway to hotel booking
At the centre of the case was not just concentration within a single market. The regulator assessed that Etraveli would be given a powerful additional channel for attracting users.
The logic is simple: buying a plane ticket is often the start of the trip planning process. By taking control of one of Europe's leading OTA flight players, Booking could channel more of those users towards its own accommodation offering.
The court accepted such a theory of harm and concluded that the guidelines on non-horizontal mergers do not prevent the Commission from examining new types of competition concerns emerging in digital markets.
Judgement important even outside of Booking's case
That is probably the most important part of the judgement for travel tech sector. Big platforms can no longer count on acquisitions being viewed solely through the lens of the market in which the acquired company operates.
Regulators can analyse the entire customer journey, data, traffic between verticals and cross-selling potential. For large OTA platforms looking to bundle flights, hotels, car hire and other services into a single app, this increases the regulatory risk of future acquisitions.
Such an approach is also important for hoteliers. Back in 2023, the Commission warned that further strengthening of Booking's position could reduce competitive pressure and lead to higher distribution costs for accommodation providers.
Booking can still continue its legal battle
Booking does not agree with the judgement. The company claims that the Commission's assessment is incorrect both factually and legally and is considering an appeal to the Court of Justice of the European Union.
Regardless of any potential continuation of proceedings, the judgement already sends a fairly clear message to the European travel tech market: building a large integrated platform through acquisitions will in future also be viewed through the lens of how much such an ecosystem hinders the growth of competitors
