Saturday 22 February 2020

European Commission fines hotel group for market partitioning


European Commission fines hotel group for market partitioning

The Commission has fined Meliá EUR 6.7 million for agreements with Kuoni, REWE, Thomas Cook and TUI that restricted active and passive sales for hotel accommodation in the EU.



The fine includes a 30% reduction for co-operation that Meliá provided during the investigation.



Meliá's standard terms contained a clause under which the contracts with tour operators were valid only for reservations of consumers who were resident in specified countries.  The Commission found that this restricted the ability of tour operators to sell the hotel accommodation in all EEA countries and to respond to passive requests direct from consumers outside the specified countries.  As a result, the clauses also discriminated between customers based on their country of residence or nationality.



The case falls under the ‘secondary line discrimination’ theory where certain clauses in contracts can be found to infringe Article 101 TFEU in extreme circumstances.  At the same time, the decision reflects the Commission’s strict stance against provisions in contracts that partition the single market.



Followjng investigation, the Commission has closed its inquiry into the tour operators.



Melia (Holiday Pricing) (Case AT.40528); Commission press release IP/20/302


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