The CMA launched an investigation into “the suspected sharing of competitively sensitive information among competing hotel providers – Hilton, IHG Hotels and Marriott – via a hotel data services provider” (CoStar) in February, saying this could infringe the 1998 Competition Act.
The investigation involves Hilton Worldwide and parent company Hilton Worldwide Holdings, InterContinental Hotels Group, and Marriott Hotels and parent Marriott International along with CoStar UK and its parent CoStar Group.
The CMA noted it has “not reached a view as to whether there is sufficient evidence of an infringement of competition law for it to issue a statement of objections to any party or parties”.
The authority would issue a statement of objections “if it comes to the provisional view that competition law has been infringed”.
It announced on Wednesday that the investigation would continue until at least January, with “further evidence gathering, analysis and review of information gathered”.
In a statement, the CMA noted: “Companies use various types of data analytics tools and algorithms to help them make commercial decisions. This can bring benefits including more intense competition, lower costs and faster changes in prices to better match demand and supply in markets.
“However, when rival businesses share competitively sensitive information – including through a third-party data analytics provider – this reduces the uncertainty competing businesses normally have about how each other will act.
“This can affect how strongly companies compete because it makes it easier for them to predict what each other will do and coordinate their behaviour.”
The CMA made clear: “At this stage, no assumptions should be made about whether the law has been broken.”
by Ian Taylor
