GVH appeared at Booking’s Budapest office
The Economic Competition Authority (GVH) carried out a surprise on-site inspection at the Budapest office of Booking.com, which became necessary due to the oddities related to the Hungarian online hotel reservation market. The GVH can use its investigative powers based on the Competition Act, with the permission of a judge.
GVH staff investigated Booking.com’s headquarters in Hungary in order to find out the causes and consequences of unusual events experienced in the online accommodation booking market.
The GVH uses the authority of the competition law during sector investigations to intervene quickly and effectively in the market. Such on-site research enables the GVH to gather the necessary information and address market disruptions.
“During accelerated sectoral investigations, the GVH can, based on the authority of the Competition Act, conduct on-site research (raids) with the permission of a judge. This tool, which enables efficient and quick intervention, supports the GVH to collect the information necessary to uncover and deal with market disturbances.”
– announced the GVH in response to Index’s question.
As part of the accelerated sector investigation launched on August 24, the GVH is also investigating how Dutch Booking.com’s contractual and contract performance practices affect market competition. In the recent period, many domestic accommodation providers have reported that Booking.com applies conditions and practices to them that are not applied to other accommodation providers. As a result, the suspicion arose that competition between accommodation providers may have been restricted, which directly affects consumers booking accommodation, especially in the summer season.
The aim of the GVH’s investigation is to ensure that competition in the accommodation reservation market remains healthy and fair, and that both accommodation providers and consumers are adequately protected. The authority will publish the results of the accelerated sector investigation, which the national competition authority has 30 days to decide on.
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