From Straight Arrow · · 1m 40s
Expedia class-action lawsuit claims monopoly pricing
Expedia faces class-action lawsuit for allegedly monopolizing hotel prices through strict online contracts.
In brief
Expedia faces class-action lawsuit for allegedly monopolizing hotel prices through strict online contracts. Expedia's most-favored-nation clauses allegedly force hotels to charge higher prices on competing platforms, but analysts say any price change would be negligible for consumers. Originally reported by Straight…
Class-action lawsuit targets Expedia
A class-action lawsuit claims Expedia violates antitrust laws by preventing hotels from offering lower rates offline.
Expedia's most-favored-nation clauses
The lawsuit alleges Expedia's most-favored-nation clauses force hotels to list higher prices on competing platforms.
Price-fixing scheme costs travelers
Plaintiffs say the price-fixing scheme has cost them money in lost discounts during holiday travel.
Antitrust analysts disagree
Antitrust analysts Jonathan "Jack" Nicastro and Lee Hepner disagree on how Expedia's most-favored-nation clauses affect consumers.
Expedia holds 23% market share
Expedia holds 23% of the hotel booking market, according to antitrust analyst Nicastro.
VIP program raises prices
The lawsuit claims Expedia's VIP program requires hotels to price rooms 10% to 25% higher on non-Expedia platforms.
Hepner: Expedia undermines competition
Hepner says Expedia's practices cause hotels to raise rates on their own websites and penalize them for violating the policy.
Expedia's impact on pricing
If the lawsuit succeeds, consumers could see higher rates but analysts say changes would be negligible for most travelers.
Long timeline for change
The lawsuit could take years to resolve due to the glacial pace of class action lawsuits.
Minimal consumer impact
Both analysts agree the lawsuit is unlikely to produce a discernible change in what travelers pay.
Lawsuit outcome uncertain
The lawsuit's outcome is unlikely to affect travelers' pricing experiences significantly.
The main idea
Expedia's most-favored-nation clauses allegedly force hotels to charge higher prices on competing platforms, but analysts say any price change would be negligible for consumers.
