Expedia 2013 Annual Report Download - page 47

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companies with the right to provide non-public discounts on the rate offered for room only hotel accommodation
bookings at UK hotels to eligible European Economic Area resident members of the online travel companies’
closed groups. The commitments also clarify the hotels’ rights to offer discounts under the same conditions to
members of their closed groups. In addition, the commitments require online travel agencies to modify their most
favored nation clauses, as relevant, so as not to apply to any discounting activities covered by the commitments.
The commitments are binding on the parties through January 31, 2016.
In addition, a number of competition authorities in other European countries have initiated investigations
into competitive practices within the travel industry and, in particular, in relation to most favored nation clauses
and other contractual arrangements between hotels and online travel companies, including Expedia. These
investigations differ from the OFT investigation, in relation to the parties involved and the precise nature of the
concerns. We are unable at this time to predict the outcome of these investigations and their impact, if any, on
our business and results of operations.
Since August 20, 2012, more than thirty putative class action lawsuits, which refer to the OFT’s Statement of
Objections, have been initiated in the United States by consumer plaintiffs alleging claims against the online travel
companies, including Expedia, and several major hotel chains for alleged resale price maintenance for online hotel
room reservations, including but not limited to violation of the Sherman Act, state antitrust laws, state consumer
protection statutes and common law tort claims, such as unjust enrichment. The cases have been consolidated and
transferred to Judge Boyle in the United States District Court for the Northern District of Texas. On May 1, 2013,
the plaintiffs filed their consolidated amended complaint. On July 1, 2013, the defendants filed motions to dismiss
that complaint. A hearing on the defendants’ motions to dismiss took place on December 17, 2013.
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