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Seattle-based travel booking giant Expedia (EXPE.O) has been ordered to face a lawsuit accusing it of driving Swiss rival Amoma out of the global online hotel search market, resulting in losses exceeding $100 million, ruled a U.S. judge.
Judge Denies Expedia’s Bid to Dismiss Lawsuit
U.S. District Judge Barbara Rothstein denied Expedia’s motion to dismiss the lawsuit, asserting that Amoma had credibly alleged Expedia’s abuse of market power to harm its competitor.
Allegations and Denials
Although Expedia has denied the accusations, Expedia’s representatives and legal team did not immediately respond to requests for comment. Amoma, which positioned itself as offering lower rates compared to other booking platforms, declared bankruptcy in 2019. Lawyers for Amoma refrained from immediate comment.
Claims of Market Manipulation
Amoma’s lawsuit, filed in June, contended that Expedia’s hotel booking subsidiary Trivago altered third-party listings, reducing Amoma’s visibility on the site and increasing its advertising costs. Amoma claimed that over half of its hotel bookings came through Trivago and accused the platform of altering its advertising process to obscure lower prices, thus driving Amoma out of the market.
Expedia’s Defense
Expedia countered that Trivago’s design changes were not anti-competitive but aimed to enhance its products in response to consumer demand. Expedia argued that Amoma failed to adapt to the new process and ultimately faltered as a company.
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Legal Proceedings
The case, titled Office Cantonal des Faillites de la République et du Canton de Genève acting in its capacity as a representative in the bankruptcy of Amoma SARL v. Expedia Inc, is being heard in the U.S. District Court, Western District of Washington, under No. 2:23-cv-00983-BJR.
Legal Representation
For the plaintiff, Amoma SARL, legal representation is provided by Lynn Sarko and Ryan McDevitt of Keller Rohrback. On the defendant’s side, Expedia Inc., legal representation comes from Angelo Calfo of Morgan, Lewis & Bockius, and Thomas Barnett of Covington & Burling.
By addressing the core allegations and legal proceedings, this revised article adheres to the guidelines while presenting the essential details of the case between Expedia and Amoma.
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