European Commission clears travel merger at Phase I
The European Commission has unconditionally cleared the combination of two major UK tour operators, MyTravel and Thomas Cook, without launching a phase II investigation. Although the deal reduced the number of major vertically integrated tour operators in the UK from four to three, the Commission found that this was not likely to raise either unilateral or coordinated effects concerns because of the continuing competition from the remaining two integrated tour operators and a number of small independent tour operators. Moreover, the Commission pointed to important changes in the market since they blocked the combination of Airtours and First Choice in 1999, with increasing competitive pressure being imposed by independent holiday-making options, using online booking and low-cost airlines. Potential vertical concerns were also rejected. A CRAI team led by Alan Overd and Diana Jackson advised MyTravel throughout the process.
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