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The Office for Protection of Competition has imposed a fine of CZK 8,336,000 on the company Booking.com for indulging in prohibited anti-competition practices in the field of online short-term accommodation bookings.
The Office has found that between 2009 and 2015, Booking.com entered into several prohibited vertical agreements with providers of short-term accommodation services in the Czech Republic. The Office determined that these agreements distorted competition in the online booking platform market for hotels in the Czech Republic, and potentially other EU countries. In its first-instance decision, the Office concluded that Booking.com had acted in breach of competition law by engaging in anti-competitive practices.
Booking.com, inter alia, included so-called parity clauses in its agreements with its business partners. According to these clauses, Booking.com was to receive the same or better booking conditions in terms of price, availability of rooms, and other booking conditions, than those available on the website of these accommodations, or on any other online or offline distribution channel. As a result of these restrictive clauses, none of Booking.com's competitors were able to obtain better booking conditions from the accommodation. According to the Office, by entering into such preferential agreements, Booking.com had prevented the development of competition within the market sector. The decision of the Office was based on an in-depth investigation during which hundreds of hotels were approached and interviewed.
Further, the Office rejected Booking.com's objections in appeal relating to the demarcation of the relevant market, or the proof of anti-competitive consequences. The Office described the offence as serious.
In view of other EU member states, this administrative decision is important. The Office concluded that Booking.com's conduct may potentially influence the trade among EU member states in terms of providing online booking services for short-term accommodation.
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Stewarts
'No one has done as much for me as you,' Eva said.
Stewarts
"A visit to her daughter in London turned Eva's life upside down when she says she stepped into a crossing on a green light but was hit by a car. Despite her remarkable bravery, she faced a long treatment due to fractures in her pelvis, and the associated limitations and pain are likely to persist for the rest of her life. Regular headaches and impaired concentration compound her challenges.
Eva contacted us through an organization temporarily helping her manage her difficult living situation. At that time, she was destitute, relying only on subsistence payments. We were able to assist her because we specialize in personal injury and have contacts with proven colleagues abroad.
We worked with Stewarts, a UK law firm, on this case. Attorneys Klára Dvořáková and Rebecca Huxford helped Eva with the documentation in her case, explaining her options and the differences between the Czech and British systems of healthcare and social benefits reimbursement. Within a few months, thanks to the professional cooperation between the two offices, an offer of compensation from the insurance company of approximately CZK seven million was achieved. The client accepted this settlement because she did not want to deal with courts in the United Kingdom.
Subsequently, we assisted the client with related tax issues and contacted Auditone, a tax consultancy firm, which arranged for the filing of a tax return. Compensation for lost income is taxable, unlike most personal injury compensation.
'No one has done as much for me as you,' Eva said.
The fact that we were able to help Eva gives our work meaning and brings us great joy. We are very happy that, thanks to our many years of active involvement in the international professional organization PEOPIL, we can cooperate on such cases."
Livingstone, Tour Operator
Thank you again for your valuable advice. I breathe better when I know who to turn to.
Livingstone, Tour Operator
"Thank you again for your valuable advice. I breathe better when I know who to turn to."
Anders Thorsen Advokatanpartsselskab
It has been an absolute pleasure to work with you.
Anders Thorsen Advokatanpartsselskab
"It has been an absolute pleasure to work with you and your colleagues. Your advice and way of handling the matter and our communication has been of the highest quality and we are very happy with the outcome.
If any of my clients need assistance in matters in the Czech Republic in the future, I know who to recommend."