Foreign online hotel reservation agencies complied with voluntary remedial orders from Korean antitrust authority and offered to remove the provision enabling them to force domestic lodgers to provide their customers with lowest rates.
According to industry sources on Sunday, foreign online hotel reservation agencies including Booking.com, Agoda, Expedia and Trip.com recently have submitted their plan to correct the lowest rate guarantee provision in the contracts with partner hotels and accommodations in Korea to the Fair Trade Commission (FTC).
Their action came after the FTC warned of taking punitive action if they do not correct their forcible business practice.
With the provision, the companies were able to demand partner hotels and accommodations in Korea not to provide cheaper room rates at other platforms. The FTC found the action unfair “control” over rate-setting.
The FSC declined to comment whether their proposal will influence its measure, citing a review is still under progress.
By Baek Sang-kyung and Lee Ha-yeon
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]