Competition Law in Tourism

PRIVATE ANTITRUST ENFORCEMENT IN THE TOURISM INDUSTRY 95 industry towards the economy as well as the number of tourist services on the market, these services could not be completely ignored. On the contrary, in various sectors of the tourism industry including online reservation platforms, transportation and hospitality, NCAs, courts and the EC all issued decisions that find anticompetitive practices. One such decision was Case COMP/38.006 – Online Travel Portal16, Case IV/D-2/34.780 – Virgin/British Airways17 or more recently, judgement of the Court of 21 January 2016 related to an online reservation system and the decision of the Lithuanian Competition Authority18. In comparison to other sectors of the economy, with the exception of consumer protection, the tourism industry is rarely on the agenda of competition authorities or the Court. Following the above emphasis on consumer protection, it is stressed that every tour operator and tourism business must comply with competition law or risk hefty fines being imposed by the competition authority or court. In some countries, penalties for not abiding by these laws can extend to individual and criminal responsibility19. There are also specific areas of the tourism industry that are sensitive to the field of antitrust law, such as dominance and mergers, transport (particularly aviation), accommodation and travel distribution channels20. Having said that, and considering the main purpose of this paper, there is no need for an in-depth analysis of antitrust law in any particular countries. However, in order to discuss private antitrust enforcement in the tourism industry, the main rules of antitrust law that are common in the vast majority of free market economies have to be outlined. In general, the main activities that are strictly prohibited by antitrust law include various types of prohibited agreements (both horizontal and vertical), concerted practices and abuse of 16 Notice pursuant to Article 19(3) of Council Regulation No. 17 – Case COMP/38.006 – Online Travel Portal, OJ C 323, 20.11.2001, pp. 68. 17 Commission Decision of 14 July 1999 relating to a proceeding under Article 82 of the EC Treaty (IV/D- -2/34.780 – Virgin/British Airways), OJ L 30, 4.2.2000, pp. 124. For more see A. Papatheodoru, Exploring Competition Issues … and F. Souty, Competition in International Tourism, Simposium on Tourism Services 22-23 February 2001, World Trade Organization, Geneva (Outline of presentation) and Competition Challenges for World Tourism and Global Anti-Competitive Practices in The tourism industry, WTO 2003 (https://www.e-unwto.org/doi/ pdf/10.18111/9789284406968). 18 See judgment of the Court (Fifth Chamber) of 21 January 2016 “Eturas” UAB and Others vs. Lietuvos Respublikos konkurencijos taryba, case C-74/14 – Eturas and Others (accessible at: https://curia.europa.eu/). 19 See remarks about increasing criminalisation of competition law P. Whelan, Competition Law and Criminal Justice … 20 See A. Papatheodoru, Exploring Competition Issues … and F. Souty, Competition in International Tourism …

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