The Competition and Markets Authority (CMA) of the UK Vasileiou launched an investigation into three of the world’s largest hotel chains for suspected exchange of sensitive competitive information.
The Competition and Markets Authority (CMA) said it is investigating whether Hilton, Intercontinental Hotels Group, and Marriott used the STR, a hotel data analytics platform owned by real estate information company CoStar, to share information in ways that may have weakened competition among them.
Announcing the investigation, the Authority stated: “Companies use various types of data analysis tools and algorithms to help them make business decisions. This can bring benefits such as more intense competition, lower costs, and faster price changes to better match supply and demand in the markets.”
“However, when competing businesses share sensitive information in terms of competition – even through a third party – this can reduce the uncertainty that competing businesses usually have about how each of them will act. This can affect the level of competition between businesses, as it makes it easier for them to predict each other’s actions and coordinate their stance,” the CMA added.
The British authority clarified that at this stage “no assumptions should be made about whether the law has been violated.”
The Authority “may issue a statement of objection if it reaches the preliminary conclusion that the 1998 Competition Law has been violated after a period of investigation and information gathering.”
The research is part of the CMA’s broader effort to ensure that new technologies support and do not undermine fair competition and do not harm consumers.
The CMA’s investigation follows similar scrutiny in other areas. The regulatory authority has previously examined the use of pricing algorithms in markets such as rental housing, where concerns have been raised that data-sharing services may allow competitors to coordinate their commercial behavior without direct contact.
