ACCC questions Wotif takeover
Expedia’s proposed takeover deal of Wotif in Australia has raised the concerns of Australian Competition and Consumer Commission. Market inquiries have indicated that Wotif is a major source of bookings for Australian accommodation providers and charges a lower commission rate than Expedia.
In a preliminary assessment last week, ACCC said Expedia’s bid for Sydney-listed Wotif.com Holdings Ltd could inflate commission rates charged to accommodation providers.
“Market inquiries have indicated that Wotif is a major source of bookings for Australian accommodation providers and charges a lower commission rate than Expedia,” ACCC chairman Rod Sims said in a statement.
“Commission rates charged by Expedia and Booking.com in Australia are lower than the rates charged by those companies in other parts of the world. The presence of Wotif may be a contributing factor to this difference. Market participants have expressed concern that the removal of Wotif as an independent competitor will allow Expedia to increase its commission rate.”
“The ACCC is seeking further information to determine whether the proposed acquisition is likely to substantially lessen competition in the market for the online distribution of Australian accommodation,” Mr Sims concluded.
