Brussels, 25 September 2023 (dpa/MIA) - The European Commission prohibited on Monday the proposed acquisition of online travel platform eTraveli by Booking under European Union law.

US-based Booking holds a market share of over 60% of online travel agencies in Europe, the commission said. Swedish company eTraveli runs several websites to compare airfares and book flights.

"Booking’s acquisition of eTraveli would strengthen Booking’s dominant position in the online travel agencies market and likely lead to higher costs for hotels and, possibly, consumers," EU Justice Commissioner Didier Reynders said.

The US-based company failed to "offer remedies that were sufficient to address these concerns," a press release said, leading to the commission's decision to prohibit the acquisition.

"Our decision to block the merger means that European hotels and travellers will not be further limited in the options available to offer their services and book their trips," Reynders said.

"This also means that the drive for competitive prices and innovation will be preserved in this important part of the travel industry," he added.

During the commission's investigation, other actors in the tourism sector, including competitors and hotels, raised concerns that Booking's merger with eTraveli could reduce competition and increase prices, the press release said.

As a remedy, Booking had proposed showing customers offers for hotels on competitor platforms after buying flight tickets on its own sites. The displayed alternatives were to be selected by Booking-owned search service KAYAK, the commission said.

The commission ruled the proposal as untransparent, ineffective and difficult to monitor.

Booking can take legal action against the commission's decision.

Photo: MIA archive