CMA Investigates Hotel Chains for Sensitive Information Sharing
Summary
The UK's Competition and Markets Authority (CMA) has launched an investigation into Hilton, IHG, and Marriott for suspected sharing of competitively sensitive information via the STR data analytics tool. The probe will examine potential infringements of competition law.
What changed
The Competition and Markets Authority (CMA) has initiated an investigation into Hilton, IHG Hotels, and Marriott, along with the data services provider STR (owned by CoStar), for allegedly sharing competitively sensitive information. This action falls under the Competition Act 1998 and aims to determine if the use of data analytics tools has led to coordinated behaviour or reduced competitive uncertainty among these hotel chains.
While the CMA emphasizes that no assumptions should be made about legal breaches at this stage, companies involved are subject to scrutiny. The investigation will involve information gathering, and if a provisional view of infringement is reached, a statement of objections may be issued. The CMA also highlights its leniency policy, offering potential immunity or penalty reductions for businesses that report cartel activity and cooperate with the investigation. Individuals involved may also receive immunity from criminal prosecution.
What to do next
- Review internal data sharing practices related to competitive information.
- Consult legal counsel regarding potential implications of data analytics tools on competition law.
- Monitor CMA case page for updates on the investigation.
Penalties
Potential penalties under the Competition Act 1998, with possibilities for immunity or reduction under the CMA's leniency policy for cooperating businesses.
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