Expedia Group has been expanding through acquisitions this year, completing deals for Tiqets and Cartrawler to strengthen its business-to-business partnership operations. Meanwhile, Booking Holdings faces significant constraints on its merger and acquisition activities in Europe after a legal setback.
Europe’s General Court issued a ruling on Wednesday upholding a 2023 decision that prohibited Booking Holdings from acquiring Etraveli, a Swedish flights specialist company, in a transaction valued at approximately €1.63 billion ($1.9 billion). The court determined that allowing the acquisition would be anticompetitive and reinforce Booking’s existing market dominance in the European travel sector.
The court’s analysis focused on the strategic role of flight bookings within Booking’s business model. The judges found that flight bookings represent a low-margin customer acquisition channel that serves primarily to direct travelers into Booking’s high-margin hotel services. By acquiring Etraveli, the court concluded, Booking would strengthen its position in the core hotel market where the European Commission had previously determined the company holds a dominant position.
The implications of the court decision extend beyond the specific transaction and the two companies involved. The ruling establishes precedent for how European regulators evaluate merger proposals in the travel industry and potentially in other sectors. Companies pursuing superapp strategies or other forms of vertical integration, including major technology firms such as Uber, may encounter increased regulatory scrutiny if they hold dominant market positions in particular categories, making it more difficult to advance their expansion objectives through acquisitions in European markets.
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