Priceline 2014 Annual Report Download - page 29

"Cookie" laws could negatively impact the way we do business.
A "cookie" is a text file that is stored on a user's web browser by a website. Cookies are common tools used by thousands of websites,
including ours, to, among other things, store or gather information (e.g., remember log-on details so a user does not have to re-enter them when
revisiting a website), market to consumers and enhance the user experience on a website. Cookies are valuable tools for websites like ours to
improve the customer experience and increase conversion on their websites.
The European Union's ePrivacy Directive requires member countries to adopt regulations governing the use of "cookies" by websites
servicing consumers in the European Union. For example, on June 5, 2012, an amendment to the Dutch Telecommunications Act became
effective. The amended act requires websites, including Booking.com, to provide Dutch users with clear and comprehensive information about
the storage and use of certain cookies and obtain prior consent from the user before placing certain cookies on a user's web browser. To the
extent any such regulations require "opt-in" consent before certain cookies can be placed on a user's web browser, our ability, in particular
Booking.com's ability, to serve certain customers in the manner we currently do might be adversely affected and our ability to continue to
improve and optimize performance on our websites might be impaired, either of which could negatively affect a consumer's experience using our
services. As a result, these regulations could have a material adverse effect on our business, market share and results of operations.
Our stock price is highly volatile.
The market price of our common stock is highly volatile and is likely to continue to be subject to wide fluctuations in response to
factors such as the following, some of which are beyond our control:
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operating results that vary from the expectations of securities analysts and investors;
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quarterly variations in our operating results;
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changes in expectations as to our future financial performance, including financial estimates by securities analysts and investors;
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worldwide economic conditions in general and in Europe in particular;
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fluctuations in currency exchange rates, particularly between the U.S. Dollar and the Euro;
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announcements of technological innovations or new services by us or our competitors;
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changes in our capital structure;
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changes in market valuations of other Internet or online service companies;
• announcements by us or our competitors of price reductions, promotions, significant contracts, acquisitions, strategic partnerships, joint
ventures or capital commitments;
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loss of a major travel service provider participant, such as a hotel chain, rental car company or airline, from our services;
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changes in the status of our intellectual property rights;
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lack of success in the expansion of our business model geographically;
• announcements by third parties of significant claims or initiation of litigation proceedings against us or adverse developments in
pending proceedings;
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occurrences of a significant security breach;
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additions or departures of key personnel; and
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trading volume fluctuations.