
Following price-fixing allegations against it last month in the UK, Expedia is once again under pressure from competition authorities, this time in the US, after claims it was involved in illegal anti-competitive behavior. Hotel groups Starwood, Hilton, and Marriott are also involved.
A suit filed in California federal court accuses hotel operators Marriott International, Hilton Worldwide, and Starwood Hotels & Resorts of colluding with online operators Expedia, Orbitz Worldwide and Travelocity, amongst others, to ensure minimum prices on rooms, breaking federal and California state competition laws.Plaintiffs say the companies drew up agreements during industry meetings and conferences which prevented hotel operators from dealing with online retailers that sold rooms below certain prices in an attempt to combat increasing competition from smaller online retailers. Steve Berman, an attorney for the plaintiffs, said: "The reality is that these illegal price-parity agreements mean consumers see nothing but cosmetic differences and the same prices on every site."Price-fixing practices are believed to be common in the industry, the lawsuit citing numerous accounts of companies admitting and sometimes defending it.
