German competition authority Bundeskartellamt, has published a paper on the effects of narrow price parity clauses on online sales of online hotel platforms based on the Bundeskartellamt’s perspective on the investigation results, assessments and the conclusions against Booking. This new paper is part of the series of papers on “Competition and Consumer Protection in the Digital Economy”.
During the investigation against Booking.com, Bundeskartellamt looked at the extent to which such clauses limit competition, both between the online hotel platforms and the hotels themselves. In this context, the paper examines, among other aspects, the effects of price parity clauses and presents the findings on hotels’ price-setting behaviour and on consumers’ behaviour when booking a hotel room. The findings give insight “free-riding effects”, which are often used as a justification for such clauses.
The study is accessible through this link:
(Bundeskartellamt – 28.08.2020)
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NAZALI TAX & LEGAL |