Booking Loses Appeal Against EU Veto on €1.63 Billion ETraveli Acquisition
EU Antitrust Ruling and Its Implications for Booking Holdings
By Foo Yun Chee
Background of the ETraveli Acquisition
BRUSSELS, Sept 9 (Reuters) - Booking Holdings on Wednesday lost its fight against an EU antitrust veto of its €1.63 billion ($1.90 billion) ETraveli acquisition three years ago, as Europe's second-highest court sided with regulators.
European Commission's Decision
The European Commission, in its 2023 decision, said the deal would have created a travel ecosystem for Booking, leaving rivals unable to compete.
General Court's Ruling
The Luxembourg-based General Court agreed with the EU competition enforcer and rejected Booking's arguments that the Commission had not followed its own merger rules, and had applied an incorrect legal standard.
Judges' Statement
"The Commission found, correctly, that the acquisition of Etraveli Group, Europe's leading online flight booking operator, would have strengthened Booking's already dominant position on the market for online travel agencies in the hotel sector," judges said.
Increased Scrutiny of Tech Deals
The Commission, which acts as the EU competition enforcer, has increased its scrutiny of tech deals in recent years due to concerns over "killer acquisitions", where dominant firms buy smaller rivals to eliminate competition or strengthen their market position.
Key Players Involved
Booking's brands include Booking.com, Rentalcars, Priceline and Agoda. Swedish rival ETraveli, which is owned by private equity firm CVC Capital Partners, owns Gotogate and Mytrip and also operates airline content distribution services provider TripStack.
Next Steps and Case Details
The ruling can be appealed to the Court of Justice of the European Union, Europe's highest.
The case is T-1139/23 Booking Holdings v Commission.
($1 = 0.8593 euros)
(Reporting by Foo Yun Chee; Editing by Sudip Kar-Gupta and Jan Harvey)
