The European Union’s competition watchdog has blocked Booking Holdings’ plan to buy Swedish online hotel platform ETraveli for 1.7 billion dollars, a decision reported by Reuters. The EU commission concluded that the merger would harm competition across the single market, and public authorities in Brussels emphasized that the deal would likely stretch Booking’s already dominant position in European online hotel bookings. The ruling underscores the bloc’s ongoing scrutiny of how large online travel agencies shape price and choice for travelers in the region.
European Commission officials explained that, before reaching a decision, they analyzed input from a broad spectrum of industry players and consumers. In formal proceedings, Booking Holdings faced questions from the regulator about potential abuses of market power and reduced competition in European lodging markets. The commission highlighted that the inquiry involved consultations with thousands of hoteliers and accommodation providers who voiced concerns about reduced options and higher booking costs were the merger to proceed. The agency stated that the concerns centered on how a stronger Booking could influence price competition, service terms, and the range of available properties for European travelers.
Didier Reynders, who leads the EU competition authority, noted that the decision followed substantial outreach, including surveys of approximately 15,000 hotel owners and innkeepers to gauge industry sentiment toward the proposed combination. He stressed that the responses from market participants generally signaled worries that the acquisition would deepen Booking’s market leadership in the European Economic Area, potentially marginalizing smaller players and altering buying dynamics across borders. The commission’s position reflects the bloc’s aim to preserve consumer choice and fair access to competitive pricing in a rapidly evolving online travel landscape.
Analysts and industry observers indicated that the entry of a behemoth into European bookings could translate into fewer alternatives for travelers and, depending on policy, a potential uptick in processing fees or ancillary charges. In the wake of the ruling, some market voices warned that consumer costs might increase if competition erodes and price signaling becomes less transparent. The European Commission also cited concerns about the potential dampening of price competition and the risk that hotel suppliers could face tougher contract terms if Booking’s influence grows unchecked across the region.
Booking Holdings has argued that the decision is unjustified and said it will pursue all available avenues to challenge the ruling. The company pointed to prior approvals in other major markets, including unconditional authorizations in the United States and the United Kingdom, as evidence that the deal did not pose insurmountable competition issues. Industry participants are watching closely to see whether appellate steps will alter the regulatory assessment or whether the EU stance might shape future cross-border consolidation in the travel sector, especially as online platforms continue to redefine how travelers discover and book accommodations. The situation remains dynamic as regulators reassess the balance between scale advantages and competitive safeguards in a market that has rebounded strongly following the travel disruptions of the pandemic.