Booking.com has lost its legal challenge against the EU ban on its planned acquisition of flight-booking platform eTraveli. Booking is now weighing whether to appeal the decision.
The European Commission had prohibited the acquisition of eTraveli back in 2023. The General Court of the European Union in Luxembourg has now upheld that ban, ruling that a merger between the two companies would have posed a serious obstacle to competition.
Back in 2023, European competition regulators justified the ban by pointing to concerns over rising costs for hotels, and potentially for their customers. The Commission noted at the time that Booking was the dominant hotel portal in the European Economic Area, and that booking a flight is often the first step in planning a trip.
Following a merger, many of those additional flight customers would in all likelihood book their accommodation directly through Booking. The Commission explained that arranging a flight offers the greatest opportunity to then broker a hotel stay. Competitors, it warned, would find it harder to challenge Booking's dominant market position as a result.
The travel provider took the matter to court to contest the decision, arguing that the merger would lead to greater efficiency. The court, however, sided with the Commission, concluding that any such gains could not offset the negative consequences.
Two pieces of evidence, in the court's view, pointed to competition being hindered. The judges pointed to the wide gap between market leader Booking and its rivals among online travel agencies, as well as to strong network effects.
Even a small rise in market share, they said, could amplify those effects. On top of that, such growth would take place in one of the few areas Booking does not yet dominate, namely flights. That, in turn, could give rise to a travel ecosystem that other providers would struggle to replicate.
Booking.com representatives did not hide their disappointment at the ruling. "We do not agree with the outcome and maintain our firm conviction that the Commission's assessment was incorrect in terms of both fact and law", the company stated. It added that it was reviewing the ruling "as well as a possible appeal to the European Court of Justice".
