Competition Law in Tourism

36 COMPETITION LAW IN TOURISM their business model implies multiple contractual relationships. Online intermediaries need to refine their price and product strategies to find a balance between their personal interests and those of the other parties involved. Since business models of platforms may take an infinite number of forms, it is suggested that the market definition should be based on the type of interaction that the underlying platform facilitates68. In addition, considering that the “price is not the decisive parameter for the purchasing decisions of the clients” of the online platforms69, the need for adaptation of the SSNIP-test is put forward: some say the updated test should focus on quality rather than price; others suggest that the distinction between transaction (characterised by the presence of a transaction between the two groups of platform users) and non-transaction (characterised by the absence of a transaction between the two sides of the market), regarding two-sided markets, mandates a different approach to market definition70; finally, it is argued that market definition should not always take the centre stage and that competition authorities could benefit from focusing directly on the theories of harm71. All these considerations apply to a varied extent to the tourism markets. 3.1. Relevant product market In many decisions discussed below, the Commission has reviewed “traditional” markets, such as: business and leisure travel services, package holidays and its individual components, various types of flights and related services, cruises, etc. Moreover, the Commission has discussed the issue of market definition in tourism-related sub-sectors in the digital environment. Hotel accommodation services have been regarded as a separate market, still, the Commission has ultimately left the exact product market definition open. Further, the Commission has considered a sub-segmentation of the overall market for hotel accommodation by ownership type, distinguishing, more concretely, between three types of hotels: (i) economically and legally independent 68 Daniel Mandrescu, Applying (EU) Competition Law to Online Platforms: Reflections on the Definition of the Relevant Market(s), (2018) World Competition 41(3) 453, https://ssrn.com/abstract=3271624, p. 10. 69 Aleksandra Gebicka, Andreas Heinemann, Social Media & Competition Law, (2014) 37 World Competition, Issue 2, pp. 149-172, p. 157. 70 Lapo Filistrucchi, Damien Geradin, Eric van Damme, Pauline Affeldt, Market Definition in Two-Sided Markets: Theory and Practice (16.03.2013). Tilburg Law School Research Paper No. 09/2013. Available at SSRN: https://ssrn.com/abstract=2240850, pp. 6 and 42. 71 Jacques Crémer, Yves-Alexandre de Montjoye, Heike Schweitzer, Competition Policy for the digital era – Final report, (2019), available at: https://ec.europa.eu/competition/publications/reports/kd0419345enn.pdf, (hereinafter: “Crémer Report”), p. 4.

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