OFT objects to Intercontinental’s online deals

Wednesday, 1 August 2012 02:01 - - {{hitsCtrl.values.hits}}

LONDON, (Reuters): Brita-in’s competition regulator has objected to deals struck between Intercontinental Hotels Group and online travel agents Booking.com and Expedia, saying they restrict agents’ ability to discount room-only hotel accommodation.

The Office of Fair Trading said its provisional view was that Booking.com, Expedia and IHG had infringed competition law.

OFT Chief Executive Clive Maxwell said, “We want people to benefit fully from being able to shop around online and get a better deal from discounters that are prepared to share their commission with customers. The OFT’s provisional view is that Booking.com, Expedia and InterContinental Hotels Group have infringed competition law.”

IHG said in a statement on Tuesday that it considered its arrangements with the online booking agents to be compliant with competition laws and consistent with the long-standing approach of the global hotel industry.

It said it is cooperating fully with the OFT’s investigation, which commenced in 2010.

The OFT said all parties now had the opportunity to respond before it decided whether competition law had in fact been infringed.

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