Hong Kong Athletic Commission Announces: Accept The Promise Of The Three Major OTAs To Abandon Price Consistency Clauses

The Competition Commission announced the acceptance of the voluntary commitments made by the three major OTA platforms Booking.com, Expedia and Ctrip under Section 60 of the Competition Ordinance to ensure effective competition and benefit consumers, new competitors and the tourism industry.

The Commission believes that the contract terms entered into between the three major OTA platforms and accommodation providers may weaken the competition between online travel platforms, and may also prevent new or smaller OTAs from entering the market or expanding their business. Consumers cannot enjoy the benefits of effective competition in the market. These terms may harm competition and may violate the "first code of conduct" under the regulations.

The Commission on March 31 consulted on the promises made by Booking.com, Expedia and Ctrip. After considering the representations received, it considered that two amendments were necessary: In the promises, which OTA brands of its group must be listed Subject to the commitment; and stipulate that each online travel agency submits a statement every year to confirm that it has complied with the commitment during the period covered by the statement.

Xian Bolun, Chief Executive of the Competition Committee, expressed the hope that the move will ensure that different OTA platforms can effectively compete. It is expected that consumers, accommodation providers, potential new competitors, and even the entire Hong Kong tourism industry will benefit from it. This is the first time that the Commission has accepted its commitments under Article 60 of the Regulations. It is another important milestone in the enforcement of the Commission. It reflects their commitment to make good use of the various enforcement methods stipulated in the Regulations and strive to handle them in an appropriate and proportionate manner. Competition issues.

The three major OTA platforms mentioned above all have 90 days to revise their contracts with accommodation providers, including existing and future contracts, to comply with the provisions of the commitment. The validity period of the commitment is 5 years from the date of the revised contract.