皇冠体育app

Today鈥檚 judgment endorses the Competition and Market Authority鈥檚 (CMA) approach to the share of supply test, on which the CMA relied to find jurisdiction to assess the merger. In particular, the Tribunal confirmed that the application of the share of supply test is a matter of judgement for the CMA and it has a broad discretion in determining the criteria used.

CMA Chief Executive Andrea Coscelli said:

We are pleased by this important judgment from the Competition Appeal Tribunal. Sabre did not challenge the substance of our finding - that the merger would lead to less competition and harm consumers 鈥� but instead sought to argue that we did not have jurisdiction over it.

皇冠体育app Tribunal upholds our view that the share of supply test covers this type of transaction, where both companies compete closely in their innovative efforts and offer important products and services, used by UK businesses, where less competition could have serious knock-on effects for UK consumers.

Among other products and services, Sabre and Farelogix supply software solutions which help airlines to sell flights via travel agents including those that operate online. 皇冠体育appir IT solutions enable airlines to create add-ons to tickets sold through travel agents such as seats with extra leg room, WiFi and meals. Additionally, the 2 companies offer services to help airlines connect with passengers via travel agents.

On 9 April 2020, the CMA published a report blocking Sabre鈥檚 proposed acquisition of Farelogix after finding the deal could result in less innovation in their services, leading to fewer new features that may be released more slowly. Fees for certain products might also go up. As a result, airlines, travel agents and UK passengers would be worse off. In particular, the CMA was concerned that UK passengers would miss out on the benefits of continued innovation and greater choice in and control over their travel experiences.

Sabre initially challenged the CMA鈥檚 decision before the Competition Appeal Tribunal on the basis that the CMA lacked jurisdiction to consider the merger and had irrationally and unlawfully found that the merger may be expected to substantially lessen competition for UK consumers.

Sabre withdrew its challenge of the CMA鈥檚 findings that the merger would have resulted in a substantial lessening of competition (the legal test for prohibiting the merger). 皇冠体育app appeal therefore only related to Sabre鈥檚 challenge to the CMA鈥檚 jurisdiction to review the merger and a hearing took place in November 2020.

For more information, visit the聽Sabre / Farelogix merger inquiry聽web page.

For media enquiries, contact the CMA press office on 020 3738 6460 or聽[email protected].