By Anthony O. Goriainoff


The European Commission said Wednesday that it has opened an investigation into the proposed acquisition of Sweden's Flugo Group Holdings AB--which operates as Etraveli--by Booking Holdings Inc.

The Commission said it was concerned the proposed transaction would allow Booking to strengthen its position in the market for online travel agencies, and increase barrier to entry and expansion for rivals.

The executive body of the European Union said this could lead to higher costs for hotels and other accommodation providers, as well as higher prices for end customers.

The Commission said its preliminary investigation shows Booking may have the ability to engage in foreclosure strategies regarding rival flight agencies, which include reducing their visibility on its Kayak price comparison platform.

The European Commission said it has until March 31 to make a decision.

In September, the U.K.'s Competition and Markets Authority cleared the deal following a review of the transaction.


Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com


(END) Dow Jones Newswires

11-16-22 1213ET