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US: Expedia, Hotel group see no merit in price-fixing case

 |  December 18, 2013

Expedia Inc. and Starwood Hotels & and Resorts Worldwide Inc. have reportedly asked a judge to dismiss a price-fixing lawsuit against the companies, as well as other travel booking sites and hotel chains, which are accused of colluding to hike hotel room prices.

The case was initiated by hotel room purchasers throughout the US; their suits have been combined from more than 24 original lawsuits.

But the companies asked US District Judge Jane Boyle to toss the case on the basis that such price-fixing conspiracy would not be possible. “The hotels can control the price of the rooms they offer. As long as there is interbrand competition going on, consumers don’t have to worry,” a lawyer for the defendants said.

But the plaintiffs fought back, say reports, claiming that “there is no longer any price competition” since 2002.

Full Content: Bloomberg

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