Chile’s competition authority has moved to conclude an investigation into pricing practices in the online travel sector by submitting a negotiated settlement for judicial approval.
The Fiscalía Nacional Económica has requested that the Tribunal de Defensa de la Libre Competencia approve an out-of-court agreement reached with Booking.com B.V.. The agreement aims to resolve concerns arising from an investigation launched in 2024 into the company’s use of so-called price parity or “most favoured nation” clauses.
These clauses, which were found in contractual arrangements between the platform and accommodation providers, prevented or restricted hotels and other lodging operators from offering lower prices through alternative sales channels, including competing platforms, travel agencies or their own direct booking channels. According to the authority, such provisions were also embedded in the conditions governing participation in various loyalty programmes offered by the platform to both accommodation providers and consumers.
The investigation was prompted by findings from a sector inquiry into the accommodation market published in April 2024, which identified widespread use of parity clauses among online travel agencies, with Booking.com holding the most prominent market position. The authority concluded that these practices could pose risks to competition by weakening rivalry between platforms, limiting incentives for accommodation providers to compete through direct channels, and potentially foreclosing current or future competitors.
Under the terms of the proposed settlement, Booking.com has committed to eliminating all identified price parity clauses in Chile and refraining from reintroducing them. The company will also formally designate Chile as a “no-parity” jurisdiction within its global terms and conditions. In addition, it must remove requirements linked to external pricing from participation criteria in key loyalty programmes, including PPP, PPP+ and Genius, and inform accommodation providers of the changes.
The commitments are set to remain in force for a minimum of three years, after which the company may request a review based on new evidence. As part of the agreement, Booking.com will also make a payment of US$6 million to the Chilean treasury.
The competition authority has framed the settlement as a pragmatic solution that safeguards competition while avoiding protracted litigation. By addressing the identified risks through binding commitments, the authority aims to restore competitive conditions in the market more swiftly and efficiently than a full judicial process would allow.
The agreement will only take effect if it is approved by the competition tribunal, as required under Chilean law. A public hearing to consider the settlement has been scheduled for 23 March 2026.