Expedia must face bankrupt hotel booker Amoma’s antitrust lawsuit

trivago NV

02/02/2024 16:38

By Mike Scarcella
       Feb 2 (Reuters) - Travel booking giant Expedia  EXPE.O 
must face a lawsuit accusing it of driving Swiss rival Amoma out
of business in the global online hotel search market and costing
it more than $100 million, a U.S. judge ruled.
    Seattle-based U.S. District Judge Barbara Rothstein on
Thursday denied Expedia's bid to dismiss the lawsuit for now,
finding that Amoma plausibly alleged Expedia abused its market
power to harm its competitor.
    A representative from Expedia and lawyers for the company
did not immediately respond to requests for comment. Expedia has
denied the claims.
     Amoma marketed itself as providing lower rates to consumers
than other booking platforms. It declared bankruptcy in 2019.
Attorneys for Amoma did not immediately respond to a request for
comment.
    Amoma's lawsuit, filed in June, said Expedia's hotel booking
subsidiary Trivago made changes to third-partly listings that
decreased Amoma's prominence on the site and increased its cost
to display rooms.
    The lawsuit said Amoma had relied on Trivago for more than
half of its hotel bookings. Amoma was one of the three top
advertisers on Trivago, according to its complaint.
    Trivago implemented changes to its advertising “bidding”
process that would “obscure the cheapest prices from consumers
and drive Amoma from the market,” Amoma alleged.
    “Were it not for defendant’s actions, consumers would have
access to lower hotel rates, and Amoma would still be in
business,” Amoma’s lawyers said in the complaint.
    Expedia countered that Trivago's design changes were not
anticompetitive. It said Amoma failed to adapt to a new process
and failed as a company.
    “The antitrust laws do not prohibit a company from seeking
to improve its products in response to customer demand even if
some customers do not adapt well to those changes,” Expedia
said.
    
    The case is Office Cantonal des Faillites de la République
et du Canton de Genève acting in its capacity as representative
in the bankruptcy of Amoma SARL v. Expedia Inc, U.S. District
Court, Western District of Washington, No. 2:23-cv-00983-BJR.
    For plaintiff: Lynn Sarko and Ryan McDevitt of Keller
Rohrback
    For defendant: Angelo Calfo of Morgan, Lewis & Bockius, and
Thomas Barnett of Covington & Burling 
    
    Read more:
    Australia fines Expedia Group's Trivago $33 mln on
misleading hotel room rates