Competition Law in Tourism

IATA’s New Distribution Capability (NDC) in Light of European Competition Principles Valérie Augros1 Abstract; I. Competition Awareness in CRS/GDS Development; I.1. Historical Evolution of Air Tickets Distribution; I.2. Specific European Competition Measures in Ticket Distribution; I.2.1. Exemption decisions; I.2.2. Codes of conduct; II. NDC from the Standpoint of EU Competition Rules; II.1. Reasons for the recent change of emphasis in air ticket distribution; II.2. The IATA Resolution 787; II.3. Analysis of NDC through European Principles on Competition; II.4. The GDS Surcharge Practice: a Dominance to be Prohibited?; III. Final Remarks. Abstract From its early development, air tickets distribution via computerised systems has been scrutinised from a competition perspective. However, as the development of new technologies in the nineties contributed to new trends in the purchase of air tickets by passengers, it became necessary to get distribution systems to progress. This observation led to the adoption of a resolution by IATA on “New Distribution Capability” (NDC). This new standard in air ticket distribution will not avoid the test of European competition principles, in particular given the cold welcome it received from the travel industry. I. COMPETITION AWARENESS IN CRS/GDS DEVELOPMENT I.1. Historical Evolution of Air Tickets Distribution With the development of commercial flights, it became fundamental to implement distribution networks for airlines’ tickets. In practice, intermediaries such as travel agents had to contact each airline to obtain information suitable to the travel request of their customers (schedule, fares, etc.) and to make 1 Avocat à la Cour de Paris.

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