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GDS surcharges here to stay – court ruling

22 Aug 2018 - by Savannah Freemantle
Comments | 0

TA COMPLAINT laid against

Lufthansa when it

imposed its €16 (R247)

‘distribution cost charge’ on

GDS bookings was rejected by

the European Commission at

the end of May.

The Brussels-based GDS

representative, European

Technology and Travel Services

Association (ETTSA), laid

the complaint in 2015. The

association argued that

Lufthansa had breached

the EU code of conduct

on computer reservation

systems (CRSs) by engaging

in discriminatory behaviour in

favour of its own CRS.

The EU’s CRS regulation

states that “air services by all

airlines are (to be) displayed

in a non-discriminatory

way on travel agencies’

computer screens... as these

distribution channels might

influence consumer choice”.

After spending two years

investigating the complaint,

and informing ETTSA in

November 2017 that it had

reached a legal decision, the

Commission appeared to

backtrack at the end of May.

In its ruling, the Commission

said it “does not intend

to conduct a further

investigation” and considers

it “inappropriate” to act,

because “the rules relied upon

in the complaint are under

review and may be amended”.

ETTSA has described this

ruling as unacceptable and

has called on the European

Parliament to “reprimand the

Commission and insist it fulfil

its role”.

Otto de Vries, ceo of Asata,

told TNW that he shared

ETTSA’s concerns. “It seems

to me that the rejection

was not made on adequate

grounds, as complaints

should be assessed based

on existing rules and not

potential, future changes.

We support ETTSA and look

forward to the outcome of the

objection.”

ETTSA formally objected

to the Commission’s ruling

on June 19 and now awaits

a formal decision regarding

the next step, which it might

only receive in the next few

months.

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