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Online agent welcomes OFT probe into ‘bullying’ global giants
Online travel agent Travel Republic has welcomed the Office of Fair Trading’s probe into claims travel giants’ ‘infringed competition law’.
Competition watchdog, OFT has issued a ‘Statement of Objections’ alleging Booking.com and Expedia struck deals with Intercontinental Hotels Group (IHG) which were anti-competitive.
It said they were restricting smaller agents’ ability to offer discounted hotel rooms, following a two year investigation, see previous story.
Online agent Travel Republic fully supports the OFT investigation.
Chief executive Kane Pirie said: "We refuse to single-source product.
"Our prices are known to be the best in the market and as a result we have been targeted by some of the global online travel agents who put pressure on hotels not to work with us or offer us those prices.
"They sometimes even email print-outs of our website to the hotels to complain about our better prices.
"The clear interest of the OFT in this area might give them pause for thought and cut down on their attempts to dictate the market and bully the customer."
Booking.com, Expedia and IHG have denied any wrongdoing and are ‘co-operating’ with the investigation.
Expedia told the Financial Times that the OFT’s Statement of Objections did not establish any laws had been broken while Booking.com said it disagreed with the allegations and intends to contest them vigorously.
IHG previously said in a statement 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".
By Diane Evans
Diane
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