Tuesday, April 18, 2017
Matthias Hunold asks Best Price Clauses: What Policy as Regards Online Platforms?
ABSTRACT: Online sales platforms may use best price clauses, which restrict service providers to offer better deals to customers elsewhere. Competition authorities prohibited such clauses of online travel agents that restrict the hotels’ sales on other online platforms (so-called wide clauses). By contrast, that unanimity does not exist if the clauses are limited to hotels’ direct sales (so-called narrow clauses). This article discusses the authorities’ different approaches, apparently diverging standards of proofs, as well as empirical methods to evaluate the most effective policy moving forward.