EU investigates Philips, Thomas Cook, others on online sales curbs

[February 02, 2017]  By Foo Yun Chee

BRUSSELS (Reuters) - EU antitrust regulators opened three investigations on Thursday into consumer electronics makers including Philips, six video game companies, and four tour operators including Thomas Cook on suspicion of blocking online cross-border sales.

They acted after an inquiry by the European Commission into the e-commerce industry over nearly two years showed that curbs barring customers from certain offers because of their nationality or location were widespread in the 28-country bloc.

The EU aims to boost online cross-border sales as part of a strategy to spur economic growth and create jobs, and catch up with Asia and the United States.

"E-commerce should give consumers a wider choice of goods and services, as well as the opportunity to make purchases across borders," European Competition Commissioner Margrethe Vestager said in a statement.

Companies targeted included Taiwan's Asus, Denon & Marantz, Pioneer, Steam game distribution platform owner Valve Corporation, Bandai Namco, Capcom, Focus Home, Koch Media, ZeniMax, Kuoni, REWE[REGRP.UL], TUI and Melia Hotels.

The consumer electronics makers may be impeding online retailers from setting their own prices for household appliances, notebooks and hi-fi products in breach of EU competition rules, the Commission said.

It said bilateral deals between Valve Corp and the five video games companies may prevent consumers from buying their products because of their location.

An illustration picture shows a projection of binary code on a man holding a laptop computer, in an office in Warsaw June 24, 2013. REUTERS/Kacper Pempel

The investigation into the deals between the tour operators and Melia Hotels focuses on clauses that block customers from seeing the full hotel availability or booking rooms at the best prices. It was triggered by customers' complaints.

Thomas Cook said it "notes the decision by the European Commission to investigate the availability of hotel bookings and pricing between member states. Across our 15 European source markets, Thomas Cook is committed to fair and open competition. We will cooperate fully with the Commission through this process."

Companies face fines up to 10 percent of their global turnover if found guilty of breaching EU rules.

(Reporting by Foo Yun Chee; editing by Philip Blenkinsop/Ruth Pitchford)

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