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Booking.com, Expedia and Rakuten offices probed by Japan Fair Trade Commission

Booking.com, Expedia and Rakuten offices probed by Japan Fair Trade Commission

Kristin Mariano

- April 12, 2019

Japan’s antitrust watchdog, Japan Fair Trade Commission, raided the offices of Rakuten, Booking.com and Expedia on Wednesday. The three were allegedly involved in unfair trade practices by requiring clients to offer their lowest prices on their platforms.

Japan Today cited an unnamed source with knowledge on the matter claims that the probe comes amid the scrutiny of obscure business transactions involving the OTAs for the listing and sale of products and services of their clients.

The source said that the three digital platforms allegedly urged clients to set accommodation prices the same as, or lower than, those they offered on rival websites and on hotels’ official sites.

Large online travel agencies have been called out for unfair practices such as charging high commission rates and rate parity clauses on contracts. There is no denying that OTAs such as Booking.com and Expedia have gained popularity in the recent years, but the players in the hospitality sector are clamouring for a change saying that it has unprecedented impact on small businesses.

OTAs reportedly charge as high as 35% that is too steep for small players that have thin profit margins. Moreover, operators report signing contracts with so-called ‘rate parity’ clauses that prevent them from advertising cheaper rates on their websites than those listed by OTAs.

Meanwhile, the Japan Fair Trade Commission has been notorious for checking on businesses for unfair practices. In October 2017, Airbnb’s office in Japan also came under investigation by the commission for allegedly requesting homeowners advertising short-stay properties on its site do so exclusively. The probe ended a year later after Airbnb said it will remove the requirement.

More recently, the commission launched in February a survey of transactions involving information technology giants including Amazon.com, Apple Inc, and Google LLC to investigate whether their market dominance may be hurting competition.

May we all strive to emulate her virtues and remember that true wealth lies in the depth of our character, the sincerity of our actions, and the impact we have on those around us.”

Stay riveted for our next gala event, The Brand Travel Daily Media Travel Excellence Awards that recognizes and celebrates the outstanding achievements of companies and individuals in the travel, airline, and hospitality industry. They are scheduled to take place in 11 October, 2024

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Booking.com, Expedia and Rakuten offices probed by Japan Fair Trade Commission

Kristin Mariano

- April 12, 2019

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May we all strive to emulate her virtues and remember that true wealth lies in the depth of our character, the sincerity of our actions, and the impact we have on those around us.”

Stay riveted for our next gala event, The Brand Travel Daily Media Travel Excellence Awards that recognizes and celebrates the outstanding achievements of companies and individuals in the travel, airline, and hospitality industry. They are scheduled to take place in 11 October, 2024

For inquires, to attend or sponsor next awards, kindly email here: Gary@traveldailymedia.com

If you know of any female leaders or up and coming superstars in the Travel and Hospitality industry you would like to nominate, please visit our page and complete a nomination form!
The prestigious IWTA Awards 2024 Award Winners are listed below:

content studio box

…there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you design and create an advertising campaign.

We can also organise a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

x Studio

Connect with your clients by working with our in-house brand studio, using our expertise and media reach to help you create and craft your message in video and podcast, native content and whitepapers, webinars and event formats