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Booking.com (BKNG; A3/A-; S);

CONSUMER CYCLICALS
  • More headlines as AGCM pushes a press release on it. To summarise it sees BKNG's agreement with Hotels under the Preferred Partner Programme that allows it to change at discretion to reduce prices so it is the best online offer (by monitoring other online channels) as "hinder(ing) the unfolding of effective competition in the national market" for hotel/booking services.
  • To clarify, investigations from the Italian regulator/AGCM aren't new - it was investigating Expedia & Booking in 2014 on similar grounds. At the time it also levied a $0.5m fine against TripAdvisor for not regulating reviews on its website - which was overturned in court.
  • Re impact on business practices, BKNG noted in Q4 earnings it has a track-record of working with regulators to amend practices and re. Spain said; "During any appeal process, we would expect to implement some changes to our business practices in Spain. We do not currently anticipate that these would have a significant impact on our business.".

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