Edition: International | Greek
MENU

Home » Business

Paris hotels fined for collusion

By: EBR - Posted: Wednesday, November 30, 2005

Paris hotels fined for collusion
Paris hotels fined for collusion

Six of Paris' most prestigious hotels have been fined for sharing commercial information, helping to keep prices artificially high.

The Crillon, Bristol, Meurice, Piazza Athenee, Ritz and George V hotels were accused of operating a cartel by competition regulators.
A four-year investigation found they shared details of room rates averaging more than 700 euros (£480) a night.
The six establishments have been fined a total of 709,000 euros.

Luxury
The Competition Council found that the six hotels had exploited their position at the luxury end of the market to effectively regulate prices.
The establishments were in a league of their own due to their central location, exceptional accommodation, high-class restaurants, facilities such as swimming pools and high staff numbers.
Room rates ranged from a minimum of 500 euros a night to 6,000 euros for the most prestigious suites.
But the watchdog concluded that executives had regularly shared confidential information, including details of room rates and marketing plans, for the hotels' commercial benefit.
"Taking into account the oligopolistic nature of the market, the Council considered that these practices had altered the normal rules of competition, favouring an unfair market," it said in a statement.
The Hotel Crillon - built in 1758 for King Louis XV - has been ordered to pay 248,000 euros, the single largest fine.

READ ALSO

EU Actually

European Parliament challenges member-states with an additional budget increase of 10 percent

N. Peter KramerBy: N. Peter Kramer

In his weekly column, N. Peter Kramer writes how the EP opposes Commission’s proposal to cut back on traditional programmes such as agriculture and cohesion

Europe

The EU–India Deal Is Done. Africa Must Be Next

The EU–India Deal Is Done. Africa Must Be Next

The EU-India FTA deal showed Brussels can move when the stakes are high; Africa is the real test of whether Europe can protect its economic security in a more fractured world.

Business

Where Romania can build excellence: the sources of future competitiveness

Where Romania can build excellence: the sources of future competitiveness

Romania has been, for most of its recent history, a story of potential deferred. The standard account of Romanian competitiveness, to the extent one exists in international business literature, is a cost story: cheap labor, low corporate taxes, a large domestic market for Central and Eastern European standards.

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2026. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron