The United Kingdom's Competition and Markets Authority (CMA) has opened an inquiry into the information practices of several large global hotel operators and the provider of a widely used analytics platform.
The regulator said it is investigating whether Hilton Worldwide Holdings Inc, InterContinental Hotels Group PLC and Marriott International Inc shared competitively sensitive information using STR, a hotel data analytics tool owned by CoStar. The focus of the probe is whether data exchanged via the platform reduced uncertainty about how rival firms operate, with potential implications for the intensity of competition among them.
The CMA described the central concern as the possibility that sharing detailed information through a third-party analytics provider could make it easier for competitors to predict one another's actions. When rivals acquire insights into competitors' behaviour, the authority said, this can influence how strongly they compete by facilitating coordination or mutual forbearance.
At the same time, the CMA acknowledged that data analytics tools and algorithms can generate pro-competitive effects. These include sharper competition, lower costs and quicker price adjustments that better align supply and demand. Nevertheless, the regulator emphasised that the transfer of competitively sensitive data among competing firms remains a matter of concern.
The CMA warned against assuming any legal breach at this early stage. It said that if, after gathering information and conducting its review, it forms a provisional view that competition law has been infringed it may issue a statement of objections to the parties concerned.
The businesses named in the investigation include CoStar UK Limited and its ultimate parent CoStar Group, Inc.; Hilton Worldwide Limited and its ultimate parent Hilton Worldwide Holdings Inc.; InterContinental Hotels Group Plc.; and Marriott Hotels Limited and its ultimate parent Marriott International, Inc.
The inquiry forms part of the CMA's stated effort to ensure that emerging technologies and algorithmic tools support healthy competition and do not harm consumers. The authority has previously published guidance on how firms using algorithms can remain compliant with competition law.
The CMA also highlighted the availability of its leniency policy for cartel conduct. Under that policy, businesses that report unlawful cartel activity and fully cooperate with the CMA's investigation may be granted immunity from penalties or receive reductions. The authority said individuals involved in cartel activity may also be eligible for immunity from criminal prosecution and director disqualification if they provide qualifying cooperation.
Members of the public or businesses with information relevant to cartel conduct are invited to contact the CMA's cartel hotline at 020 3738 6888 or to email [email protected]. The regulator noted that it may offer financial rewards of up to A3250,000 for information that assists in identifying and taking action against illegal cartels.
What this means
The CMA's investigation will examine whether the pattern of data sharing through STR altered competitive dynamics among major hotel groups. The regulator's approach balances potential benefits of analytics against risks that information exchange can lessen competitive uncertainty and affect market outcomes.