EDITOR'S COMMENT
• Talk of limiting the market power of large online platforms in Europe has been rumbling on for some time, although where exactly online travel agencies [OTAs] stand at the moment is still uncertain, even after the European Commission published its list of 'digital gatekeepers' this week.
Digital ‘gatekeepers’ are described as large companies that are an access point for consumers and can use their market position and power in a way that impacts other markets.
Under the rules of the European Digital Markets Act [DMA], digital platforms operating in the EU digital market must generate an annual turnover of €7.5 billion or more in three financial years, provide a core platform service in at least three EU member states, and have 45 million monthly active users in the EU to be deemed a 'gatekeeper'.
While Alphabet [parent company of Google], Amazon, Apple, ByteDance [TikTok], Meta [Facebook, WhatsApp], Microsoft and Samsung met the thresholds, OTAs were conspicuous by their absence. Whether they want to be included on the list is another issue altogether.
Despite not being a travel company, Google will be affected as a 'gatekeeper' through its trip planning service, Google Travel. As a result, Google may not be permitted to prioritise its Travel ecosystem in search results over free results from competing platforms such as Expedia, Booking Holdings and TripAdvisor.
The likes of Booking Holdings, Airbnb et al will be looking on with interest. The former says that it remains in "constructive discussions" with the Commission about whether or not the DMA should apply to its business, ahead of potentially meeting the criteria later this year. However, the terminology of the DMA rules and how it applies to OTAs is confusing, given the breadth of travel platforms operating in Europe, and the "openness and competition of the market" as Booking Holdings CEO Glenn Fogel put it.
Through the DMA, Digital Services Act, Data Act and an imminent AI Act, it is clear that the Commission is ramping up its activity to increase competition in markets across the bloc, particularly in tech and travel. As negotiations continue about introducing standardised short-term rental rules in the EU, we can expect the Commission to adopt a more hardline rhetoric on restricting big tech / digital monopolies in the coming months.
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