The European Commission has unveiled a formal investigation into agreements between airlines and two of the air industry's global distribution systems.
Sabre and Amadeus will be the subjects of the probe officially launched today, with the regulator looking into whether contracts between them and carriers restrict competition and fall foul of antitrust rules.
The Commission says certain terms in their respective agreements with airlines may hinder the choices that carriers and intermediaries have to use other providers of ticket distribution services.
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Travelport, the other member of the group of major GDSs in the market, is not part of the investigation.
"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," the Commission says in a statement.
Commissioner Margrethe Vestager, who oversees competition policy at the EC, adds: "The liberalisation of the EU aviation market more than 25 years ago has brought significant benefits to EU citizens, including more choice and lower ticket prices.
"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."
Amadeus says it has expected the investigation "for some time", will cooperate fully, and says its business practices are "aligned with legal and regulatory requirements".
The EC says the investigation is being conducted as a matter or priority but stresses that launch of the probe does "prejudge its outcome".
Travelport declined to comment.
GDS reaction
In a lengthy statement, Amadeus says: "Amadeus stands for fairness and neutrality in airline distribution, providing non-discriminatory and neutral market access for airlines and choice for consumers and travel buyers. It is well documented that the neutral marketplace provided by the GDS is facilitating comparison and choice, thus providing European citizens with competition among airlines resulting in lower ticket prices.
"Airlines are always free to decide which products and services they make available to consumers through travel agents using the Amadeus GDS, and travel agents are free to choose to work with one or more GDS or aggregator in the market, thus taking advantage of the fierce competition between them.
"Airline distribution is affected by many inter-dependent factors, including the commercial behavior of airlines and airline groups. The review of any one factor must take into account its dependence and impact on all other factors to avoid undermining the neutral marketplace and thereby harming consumers."
Sabre, for its part, says it welcomes the opportunity to further demonstrate its full content agreements and agency contracts are "pro-competitive".
In a statement, it adds: "Sabre believes full content, or parity clauses, are in the best interest of consumers and serve to provide them with comparability and transparency, enabling consumers to easily and efficiently shop and book the best flights that meet their needs. We also recognize that the airline industry is a highly competitive marketplace and many airlines today are looking for ways to differentiate themselves and create brand loyalty."
"Our travel agency agreements, in turn, enable travel agencies to have very cost-efficient access to our superior technology and thus enable those travel agencies to best serve the needs of consumers.
"Our goal has been – and will continue to be – to offer competitive access for travel agencies to airline content in the Sabre system and to deliver a solution that balances value for airlines, agencies, corporations and travelers.
"While the vast majority of the world’s carriers recognize the value of full content agreements for them and for their customers, and choose to participate in the Sabre GDS at this level, airlines are able to participate in full content or less than full content agreements based upon their unique strategies and approaches to the marketplace.
The European Travel and Technology Services Association, a lobbying group on online travel and distribution issues, which counts the three GDSs as members, also declined to comment.