The Battle Heats Up - Booking Seeks To Appeal European Commission's Decision To Prohibit Etraveli Deal

Online travel services provider Booking Holdings Inc BKNG intends to appeal the European Commission's recently announced decision to prohibit the company's acquisition of Etraveli Group from CVC Capital Partners, to the European courts.

Booking Holdings said it strongly believes the Commission is wrong on both the facts of the case and the law applicable to this transaction, which was cleared unconditionally by multiple competition authorities.

The authorities that cleared the deal include the U.K. Competition & Markets Authority and U.S. FTC.

In November 2021, Booking announced its intention to acquire Etraveli, known for brands like Gotogate and Mytrip and owned by private equity giant CVC, valued at €1.63 billion.

Booking Holdings said the prohibition is a departure from the Commission's own Non-Horizontal Merger Guidelines, which are legally binding on the Commission.

EU regulators are worried that this acquisition would further solidify Booking's dominance in the travel industry, potentially disadvantaging competitors.

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The company said that the acquisition, which would have combined two separate but complementary Europe-based businesses, would have delivered tremendous benefits for consumers and partners by bringing more options and competitive pricing.

Booking also announced an extension of an existing and long-standing commercial partnership agreement with Etraveli Group through at least December 2028.

"The European Commission's decision not only departs from settled law and precedent but it deprives consumers of travel options that they are entitled to have," said CEO Glenn Fogel.

Price Action: BKNG shares are trading higher by 0.19% at $3,068.25 in premarket on the last check Monday.