Noticias

The Competition Tribunal (TDLC) approved an out-of-court settlement entered into by the  Chilean Competition Authority (National Economic Prosecutor’s Office, FNE) with Booking.com B.V., thereby concluding an investigation launched in 2024 into the use of most-favoured-nation or price parity clauses. These clauses prevented or restricted accommodation providers from offering lower prices through other sales channels—such as other platforms, booking agencies, or their own direct channels—than those published on Booking.com’s platform.

Under the settlement, Booking.com has committed to remove all price parity clauses identified in the FNE’s investigation, to refrain from implementing such clauses in the future, and to include Chile among the “countries without price parity clauses” in its terms and conditions. In addition, the company must eliminate the external pricing criterion as a requirement for participation in the PPP, PPP+, and Genius loyalty programs, and notify accommodation providers of the commitments undertaken under the settlement.

These commitments will remain in force for a minimum of three years, after which the company may request a review from the FNE or the TDLC, subject to the submission of new evidence.

Additionally, as part of the settlement, Booking.com must pay US$6 million to the public treasury, representing the highest amount agreed upon in an out-of-court settlement to date.

In its ruling, the TDLC stated that “the obligations undertaken by Booking in this out-of-court settlement are appropriate and sufficient in relation to the risks identified by the FNE.” It also added that “there is no evidence indicating that the settlement could generate any risk to competition.”

At today’s hearing before the TDLC to review the agreement, the National Economic Prosecutor, Jorge Grunberg, emphasized the importance of out-of-court settlements as a mechanism to resolve competition issues identified by the FNE in its investigations, particularly in digital markets.

“This is an efficient mechanism that enables the attainment of timely solutions and the avoidance of lengthy and costly litigation. Out-of-court settlements make it possible to adopt binding remedies with immediate effect and, in the case of digital markets—characterized by rapid evolution and frequent innovation cycles—help safeguard their dynamism” the National Prosecutor stated.

Investigation

The investigation originates from the Accommodation Market Study, whose Final Report was published by the FNE in April 2024. That report identified the widespread use of price parity clauses by online travel agencies, with Booking.com being the platform with the largest market presence.

According to the FNE, this type of clause can generate negative effects and/or risks to competition, such as reduced competition between platforms, diminished incentives to compete with accommodation providers’ direct channels, and the exclusion of current or potential competing platforms, all to the detriment of consumers.