Then the European Union issued new rules for the internet earlier this year. Officials in Brussels envisioned a system that would prevent American Big Tech from spiraling out of control. But the bloc’s latest antitrust decision sent the message that it is not just US tech giants that will be subject to increasing scrutiny, but European tech companies as well.
Today, a takeover by travel company Booking was blocked by EU regulators, who expressed concerns that the deal could harm competition and drive up prices. Booking Holdings, whose largest subsidiary is Amsterdam-based online travel agency Booking.com, was banned from buying Swedish rival Etraveli. Booking’s CEO hit back at the European Commission’s decision, claiming it was “wrong” in terms of both the law and the details of the case.
“The European Commission’s decision not only deviates from established laws and precedents, but also deprives consumers of the travel options they are entitled to,” said Glenn Fogel, director of Booking, in a statement. Booking initially announced its intention to acquire Etraveli, a flight booking company, in 2021.
This is the first technology deal to be blocked since the European Union introduced new competition rules for the sector. The Digital Markets Act does not technically make it more difficult to approve mergers or acquisitions. But for some analysts, the decision affecting Booking.com – one of Europe’s largest tech companies by market capitalization – shows the EU’s intention to make clear that its own tech giants must also adhere to the new Big Tech rulebook .
“When the DMA was discussed last year, many people said that this is a very narrow piece of legislation that is really aimed at putting pressure on the big US tech companies,” said Nicolas Petit, a law professor and antitrust expert at European University Institute in New York. Florence, Italy. “It’s a big bonus for the European Commission to have a case like this because it kills once and for all the feeling that the DMA is targeting US companies and exempting European companies like Booking.”
The committee does not often block technology mergers. In May, the bloc approved Microsoft’s acquisition of video game company Activision Blizzard. But the decision to block Booking.com’s €1.63 billion deal comes two weeks after the EU published its list of gatekeeper companies that will have to comply with strict new antitrust rules or face fines that could rise up to 20 percent of their global annual turnover. turnover under the new Digital Markets Act (DMA).
Booking.com was noticeably absent from that list. To qualify as a gatekeeper, companies need an annual turnover of more than €7.5 billion and more than 45 million active users in the EU. Of the six gatekeeper companies, all were American (Alphabet, Amazon, Apple, Meta, and Microsoft), with the exception of ByteDance, which is headquartered in Beijing. The company said in July it was not attending due to the negative impact of the pandemic on its business.
For years, European leaders have campaigned for policies to help the EU grow its own tech giants, capable of competing with Silicon Valley exports. French President Emmanuel Macron had set a goal of having ten technology giants in the EU by 2030, worth $100 billion. The CEO of Booking, which is valued at $109 billion, has previously warned of regulations that could hinder the growth of Europe’s few success stories in the sector. .