Sharechat Logo

Commerce Commission clears Wotif, Expedia merger

Wednesday 5th November 2014

Text too small?

The Commerce Commission has cleared a merger of online travel agencies Expedia and Wotif.com Holdings after assessing concerns the tie-up would lead to increased commission rates.

The antitrust regulator focused on whether the merger would make it easier for Expedia and Priceline to raise prices or reduce service quality as the only two major players in the market, it said in a statement yesterday. The commission was satisfied the merger would be unlikely to substantially lessen competition in the market, with metasearch sites such as TripAdvisor and Google Hotel Finder playing a more important role in online accommodation bookings.

"Market participants raised concerns that Wotif was an important source of bookings for some accommodation providers and that its removal from the New Zealand market may result in them paying higher commission rates to the remaining OTAs (online travel agents)," chairman Mark Berry said. "We are satisfied that the online accommodation booking industry is dynamic."

The New Zealand antitrust regulator was one of the last regulatory hurdles for the merger, which now only needs sign-off from the Supreme Court of Queensland, which will hold a hearing today. ASX-listed Wotif anticipates the merger to be implemented on Nov. 14, when its shares are transferred to Expedia.

 

 

 

 

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Stuff pulls pin, ending big media companies' joint ad-buying business
NZ dollar rises on mild improvement in sentiment
APRA, RBNZ give ANZ Bank a headache over capital
Lack of fuel competition may be costing $400m annually - ComCom
Lack of fuel competition may be costing $400m annually - ComCom
UPDATE: Mercury earnings fall less than expected on geothermal offset
Napier Port jumps 12% on NZX debut following oversubscribed public offer
Moody's sees pressure on NZ banks' profitability
Competition watchdog proposes breaking wholesale stranglehold on petrol supply
FIRST CUT: Mercury earnings fall less than expected on geothermal offset

IRG See IRG research reports