With Booking's Etraveli Deal Still Blocked, Expedia Has the Edge in M&A
The court said the merger would have strengthened Booking’s dominant hotel business and left rivals unable to compete.
- On Wednesday, Booking Holdings lost its legal challenge against The European Commission's antitrust veto blocking its €1.63 billion acquisition of Etraveli Group. The Luxembourg-based General Court upheld the 2023 decision.
- According to The Commission, the deal would create a closed 'travel ecosystem' leveraging Booking's 'dominant position' in the hotel market. Regulators feared the purchase would leave rivals unable to compete effectively.
- Flight bookings serve as a low-margin customer-acquisition channel feeding travelers into Booking's high-margin hotel business, judges found. This strategy reinforces the company's grip on the core market where it holds a 'dominant position.'
- Unlike Expedia Group, which acquired Tiqets and Cartrawler this year, Booking faces limited M&A options following the ruling. The decision significantly constrains the company's growth prospects in the travel sector.
- European regulators have intensified scrutiny of tech deals in recent years to prevent 'killer acquisitions,' where dominant firms eliminate competition by buying smaller rivals. The ruling impacts the broader mergers and acquisitions scene in Europe.
30 Articles
30 Articles
With Booking's Etraveli Deal Still Blocked, Expedia Has the Edge in M&A
Expedia is making acquisitions to build its business while Booking in Europe doesn't have that option. Companies such as Uber would find it tougher to advance its superapp strategy in Europe if regulators deemed it to have a dominant position in particular markets.
Judges side with EU regulators in blocking Booking’s acquisition of ETraveli
Booking Holdings (BKNG.O) 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. The European Commission, in its 2023 decision, said the deal would have created a travel ecosystem for Booking, leaving rivals unable to compete. The […]
In 2023, the EU Commission had already prohibited Booking from taking over the E-Traveli flight portal. The EU Court of Justice has now confirmed this decision. This is intended to protect competition.
Hotel, flight, taxi - travel booking many people with a few clicks online. The leading hotel portal Booking wants to become even stronger when booking flights. There are concerns about this.
Reformatorisch Dagblad
welingelichtekringen.nlBrussels rightly blocked the takeover of online travel agency Etraveli by travel giant Booking Holdings, the Court of Justice of the European Union concluded on Wednesday. The European Commission did not authorize the €1.6 billion acquisition of Etraveli in 2023. It would make Booking too powerful, the EU's executive body argued.
Coverage Details
Bias Distribution
- 38% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
