By Jeffrey May, J.D.
To resolve Canada Competition Bureau concerns of abuse of dominance, Softvoyage Inc.—a Canadian developer of travel-related software—has agreed not to enforce several types of contract terms that the agency suggested increased barriers to entry in the industry. The competition authority announced today that its investigation focused on markets related to the supply of essential software for managing and distributing all-inclusive travel packages in Canada. The Competition Bureau also investigated allegations that restrictive terms in Softvoyage’s contracts with tour operators and travel agencies harmed competition and innovation by excluding rivals. The consent agreement has been registered with the Competition Tribunal and has the force of a court order.
Softvoyage describes itself as Canada’s leading provider of IT and distribution solutions to the travel industry. It is a provider of low-cost management and web distribution alternatives to tour operators, flight wholesalers, and travel suppliers. It provides travel agents shopping, comparison, and booking tools.
The Competition Bureau noted that it had conducted interviews with Softvoyage and a number of other market participants, including travel agencies, tour operators, industry associations, and Softvoyage’s former and potential competitors. Documents also were voluntarily provided.
"We commend Softvoyage for its collaboration in resolving our concerns," said John Pecman, Canada’s Commissioner of Competition. "We believe that today’s agreement will promote greater competition and innovation in the travel industry, resulting in better choices for Canadian travellers."
Companies: Softvoyage Inc.
MainStory: TopStory Antitrust
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