Penalty for hotel chain Meliá
The European Commission fined the Spanish hotel chain Meliá almost €7 million for making prohibited arrangements with tour operators, with the result that consumers could not benefit from the same offer and the best deals anywhere in Europe. This form of discrimination is contrary to European regulations.
Agreements with tour operators lead to limited supply
Meliá made arrangements with the 4 largest European tour operators (Kuoni, REWE, Thomas Cook and TUI) that were exclusively intended for consumers from certain countries. As a result, tour operators were restricted in offering hotel accommodation freely in countries of their choice and consumers were unable to take advantage of the best deals anywhere in Europe.
For example, consumers were not given the opportunity to check the availability of rooms or to book a room at the best price with a tour operator from another country.
Competitors may cooperate, but there are limits
In Europe, agreements have been made on how entrepreneurs may cooperate and compete with each other. Cooperation is allowed if it leads to innovation, more competitive prices and products/services that are better geared to the consumer. However, as Meliá did with the four tour operators, forming a cartel based on agreements that do not benefit consumers and distort competition is prohibited.
Commission imposes a fine on Meliá
The European Commission is taking tough action against cartels and entrepreneurs who apply unlawful price differences based on nationality and residence. In addition to the fine of EUR 6,678,000 million, any losses incurred by consumers and entrepreneurs as a result of the cooperation agreements can be recovered from Meliá through a national judicial procedure.
Want to know more about cartels?
Go to the website of the Consumer & Market Authority (ACM) if you want to know more about cartels and the rules of fair competition between undertakings. Do you suspect that businesses form a cartel? Report this directly to the supervisory body!