British Government Expresses Concerns Over Sabre-Farelogix Deal
By Harvey Chipkin
Britain’s Competition & Markets Authority has warned that Sabre’s proposed takeover of Farelogix raises competition concerns in the supply of IT systems used by airlines and travel agents to sell airline tickets. The CMA is working closely with the US Department of Justice on the proposed deal. Last week, Sabre said it planned to complete the deal on Aug. 21, the deadline for the DOJ to contest it. Should the deal go ahead as planned, the CMA is concerned that Sabre would not face enough competition from other suppliers, leading to higher prices or lower-quality services, as well as reduced innovation in the industry generally, which could have adverse effects for airlines, travel agents and consumers across the UK. If the merging businesses are unable to overcome the CMA’s concerns, the deal will be referred for an in-depth phase two investigation. This would be carried out by a group of independent CMA panel members.