Priceline 2014 Annual Report Download - page 28

have on the on-going investigations in other European countries or how our business may be affected by the proposed commitments if accepted.
We note that the German competition authority has required Hotel Reservation Service to remove its rate parity clause from its contracts with
hotels, and Hotel Reservation Service's initial appeal was denied. To the extent that regulatory authorities require changes to our business
practices or to those currently common to the industry, our business, competitive position and results of operations could be materially and
adversely affected. Negative publicity regarding any such investigations could adversely affect our brands and therefore our market share and
results of operations.
Further, as our business grows, we may increasingly become the target of such investigations or be limited by anti-trust or competition
laws. For example, our size and market share may negatively affect our ability to obtain regulatory approval of proposed acquisitions or our
ability to expand into complementary businesses, any of which could adversely affect our ability to grow and compete.
Regulatory and legal requirements and uncertainties could harm our business.
The services we offer are subject to legal regulations (including laws, ordinances, rules and other requirements and regulations) of
national and local governments and regulatory authorities around the world, many of which are evolving and subject to the possibility of new or
revised interpretations. Our ability to provide our services is and will continue to be affected by such regulations. For example, laws and
proposed legislation relating to data localization in some countries could adversely affect our ability to conduct business in those countries. The
implementation of unfavorable regulations or unfavorable interpretations of existing regulations by judicial or regulatory bodies could require us
to incur significant compliance costs, cause the development of the affected markets to become impractical and otherwise have a material
adverse effect on our business and results of operations.
Compliance with the laws and regulations of multiple jurisdictions increases our cost of doing business. These laws and regulations,
which vary and sometimes conflict, include the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act and local laws which also prohibit
corrupt payments to governmental officials or third parties, data privacy requirements, labor relations laws, tax laws, anti-trust or competition
laws, U.S., E.U. or U.N. sanctioned country or sanctioned persons mandates, and consumer protection laws. Violations of these laws and
regulations could result in fines and/or criminal sanctions against us, our officers or our employees and/or prohibitions on the conduct of our
business. Any such violations could result in prohibitions on our ability to offer our services in one or more countries, could delay or prevent
potential acquisitions, and could also materially damage our reputation, our brands, our international expansion efforts, our ability to attract and
retain employees, our business and our operating results. In addition, these restrictions may provide a competitive advantage to our competitors
unless they are also subject to comparable restrictions. Our success depends, in part, on our ability to anticipate these risks and manage these
difficulties. We are also subject to a variety of other regulatory and legal risks and challenges in managing an organization operating in various
countries, including those related to:
Our business has grown substantially over the last several years and continues to expand into new geographic locations. In addition, we
have made efforts and expect to make further efforts to integrate access to travel services across our various brands. These changes add
complexity to legal and tax compliance, and our increased size and operating history may increase the likelihood that we will be subject to audits
by tax authorities in various jurisdictions.
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regulatory changes or other government actions;
• additional complexity to comply with regulations in multiple jurisdictions, as well as overlapping or inconsistent legal regimes, in
particular with respect to tax, labor, consumer protection, digital content, advertising, promotions, privacy and anti-trust laws;
• our ability to repatriate funds held by our non-
U.S. subsidiaries to the United States at favorable tax rates;
•
difficulties in transferring funds from or converting currencies in certain countries; and
•
reduced protection for intellectual property rights in some countries.