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UK: The Competition and Markets Authority (CMA) has launched an investigation into the suspected sharing of “competitively sensitive information” between Hilton, IHG, and Marriott using STR.
All four businesses are under investigation. The CMA said that the probe reflects its commitment to ensure “new technologies support fair competition” and “do not harm customers”.
Following information gathering, the CMA may issue a statement of objections if it believes that the Competition Act 1998 has been infringed.
The CMA warned that, when rival businesses share competitively sensitive information – including through a third-party data analytics provider – it can reduce uncertainty about competitors’ behaviour. This in turn could affect how strongly companies compete because it is easier to predict behaviour.
Not all cases result in the CMA issuing a statement of objections and no assumption should be made at this stage that the law has been infringed.
Updates to the investigation will be made on the case page.
In 2024, STR and 10 hotel chains faced a similar lawsuit in the United States. Seven plaintiffs claimed that the “exchange of competitively sensitive information” allowed operators to set high prices.
Other cases in the United States have been brought against RealPage and Yardi.
Multifamily landlords were under investigation for sharing competitively sensitive data to generate pricing recommendations using RealPage’s algorithms.
A group of 18 property management companies were also involved in a lawsuit that accused the conspirators of colluding to coordinate pricing through the usage of a centralised, automated pricing software called Revenue IQ (formerly RENTmaximizer) software, created by Yardi Systems.
Highlights:
- The UK Competition and Markets Authority has launched an investigation into Hilton, IHG, Marriott and STR over suspected sharing of competitively sensitive information.
- The probe focuses on whether third-party data analytics may have reduced competitive uncertainty in hotel pricing and strategy.
- The investigation falls under the Competition Act 1998 and could lead to a formal statement of objections if breaches are identified.
- Similar lawsuits in the United States have targeted STR, RealPage and Yardi Systems over alleged data-sharing and algorithmic pricing practices.
