The European Commission has begun a formal investigation into whether agreements between the Amadeus and Sabre global distribution systems (GDSs) and airlines and travel agents breach EU antitrust rules.
The EC described the investigation as “a matter of priority”, suggesting “certain terms in Amadeus’ and Sabre’s agreements with airlines and travel agents may restrict the ability of airlines and travel agents to use alternative suppliers of ticket distribution services”.
It said: “This may make it harder for suppliers of new ticket distribution services to enter the market, as well as increase distribution costs for airlines, which are ultimately passed on in the ticket prices paid by consumers.”
Announcing the inquiry, competition commissioner Margrethe Vestager said: “Our investigation into Amadeus and Sabre focuses on possible restrictions in competition in the market for airline ticket distribution services.
“We are concerned that such restrictions could create barriers to innovation and raise ticket distribution costs, ultimately raising ticket prices for travellers.”
The EC said: “The agreements under investigation may breach EU competition rules which prohibit agreements between companies that prevent, restrict or distort competition within the EU’s Single Market (Article 101 of the Treaty on the Functioning of the European Union (TFEU)).”
The Commission noted there was no deadline for the investigation.
In a statement, Amadeus said the investigation “has been expected” and it would cooperate with the EC.
The company said: “The process will confirm that Amadeus’ business practices are fully aligned with legal and regulatory requirements.
“It is well documented that the neutral market provided by the GDS is facilitating comparison and choice.”
Sabre also said it would cooperate with the investigation, adding that it “welcomed the opportunity to demonstrate to the commission that our full content agreements and travel agency contracts are pro-competitive.”
The Texas-based group said it “remains committed to offering competitive access for travel agencies to airline content and delivering solutions that balance value for airlines, agencies, corporations and travellers”.
A spokesman for Travelport, the third leading GDS which is not part of the investigation, declined to comment.
The EC has previously considered but then dropped a formal complaint against Lufthansa over its imposition of GDS surcharge from the European Technology and Travel Services Association (ETTSA) which represents the GDSs and major online travel agents.
ETTSA has since complained to the European Ombudsman about the EC’s failure to complete that investigation.
The association also called on the EC Directorate-General for Competition “to look into Lufthansa’s practices and those of other carriers that have followed its lead”.
In July, the transport and tourism committee of the European Parliament slammed the EC for failing to rule on the complaint and demanded an explanation.
The chair of the committee, French MEP Karima Delli, told Christophe Dussart of the ECs Department for Mobility and Transport, DG-Move: “For three years you had a complaint. The commission has been dragging its feet. I’m not satisfied with the response from the EC. We’ll be talking at greater length about this.”