92002E0447

WRITTEN QUESTION E-0447/02

by Michael Cashman (PSE) to the Commission

(21 February 2002)

Subject: Price disparity in the holiday market

Currently some holiday companies with booking facilities in other Member States (e.g. CenterParcs) will only allow customers to book in the country they are currently in. This can result in the customer paying more for his/her holiday. Could the Commission comment as to whether this contravenes competition policy?

Answer given by Mr Monti on behalf of the Commission

(5 April 2002)

The Honourable Member asks the Commission whether the fact that some holiday companies, e.g. Centre Parcs, prevent their customers from booking their holidays from a Member State other than that in which they reside infringes the competition rules. The practice is said to result in consumers being unable to book from the Member State in which the terms are the most favourable.

In this case, the competition rules, and more specifically Article 81(1) of the EC Treaty, could apply only if the prohibition in question stemmed from or was contained in an agreement for the distribution of the services concerned, such as an agreement between a holiday company and a travel agency.

The reasons why the holiday companies had introduced such a restriction would then have to be analysed, after which it would have to be determined whether the restriction was economically justified (different modes of transport, different VAT or other tax rates, etc.).

Only after such a detailed examination had been carried out would it be possible to say whether the prohibition in question was compatible or not with Article 81(3) of the Treaty.

If such companies were to distribute their services directly to the consumer without going through travel agencies or other third parties, this type of practice would not be contrary to the competition rules unless it was being engaged in by a company in a dominant position.

The Directorate-General for Competition will investigate these matters.