A probe has been launched into a €1.63bn deal which saw Booking.com agree to acquire a global flight reservations provider.
It was announced in November 2021 that Booking Holdings had entered into an agreement with CVC Capital Partner to buy Sweden-headquartered Etraveli Group.
However, the UK's Competition and Markets Authority (CMA) has now launched an investigation into the deal over concerns it may lead to a "substantial lessening of competition".
A CMA statement said: "The Competition and Markets Authority is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
"To assist it with this assessment, the CMA invites comments on the transaction from any interested party. "
Booking.com's UK headquarters is based in Manchester. The deadline to comment on the CMA's investigation is July 25.
Speaking in November, Booking Holdings' chief executive Glenn Fogel said: "As international air travel rebounds from the impact of the pandemic, we look forward to building upon our existing relationship with Etraveli Group to make the travel booking experience easier and more seamless to support our partners and customers."
Mathias Hedlund, Etraveli Group's chief executive, added: "Booking Holdings pioneered the travel space more than two decades ago and they continue to pave the path forward by developing solutions to create seamless travel experiences.
"We have had a fantastic time together with our current owner CVC, establishing Etraveli Group as a global provider of attractive flight options at affordable prices.
"Today is a day of recognition, as well as marking a new phase in our relentless urge to improve further.
"We are thrilled to become a part of Booking Holdings, and we look forward to the next chapter of our own development as we continue to enhance the flight booking experience for our customers and partners worldwide."
