In a development poised to disrupt the online travel agency market, European Union merger regulators have intervened to halt Booking Holdings Inc.’s (NASDAQ:BKNG) proposed acquisition of Sweden’s Etraveli Group. The deal, valued at €1.6 billion ($1.7 billion), was blocked on Monday due to concerns about potential market repercussions.
The European Commission has voiced its reservations regarding the transaction, citing fears that it could strengthen Booking’s already dominant position in the market. Such consolidation might lead to higher expenses for hotels and, conceivably, consumers. The Commission’s concerns stem from the belief that this merger could further tilt the industry’s equilibrium in favor of Booking.
This ruling represents a significant setback for Booking Holdings Inc., which had aimed to expand its presence in the online travel agency sector through this acquisition. The decision to block this takeover underscores the European regulators’ steadfast commitment to preserving competitive dynamics within the industry.
