Utah’s attorney general has opened an investigation against Expedia Group alleging possible price collusion with a number of major hotel chains.
Bloomberg reports the AG’s office is looking at Expedia’s communications with chains including Marriott International, Hyatt and Hilton over restricting competition to buy Google ads.
It came to light in a lawsuit filed last December by TravelPass Group LLC, which accused hotel chains and Expedia of restricting the ability to buy ads, and so reducing consumer choice.
Utah attorney general Sean Reyes’ office said it found ‘reasonable cause to believe that a violation of the Utah Antitrust Act has occurred.’
The initial lawsuit alleges Expedia coordinated non-compete actions among the hotel chains and forced Expedia affiliates including TravelPass to comply or face losing access to Expedia’s inventory.
"The defendant hotels’ illegal activities have severely reduced, and in many cases even eliminated, the revolutionary benefits of the internet economy for hotel consumers," TravelPass wrote in its lawsuit.
Other companies named as defendants include Choice Hotels International, Red Roof Inns and Wyndham.
TravelPass is currently in an arbitration proceeding with Expedia although it was forced to comply with Utah’s request for relevant documents relating to the action.
The AG’s office said other states have now joined the investigation.
