Highlights
- The CMA is investigating Hilton, Marriott and IHG alongside data firm CoStar over alleged sharing of commercially sensitive information.
- The probe centres on CoStar's hotel benchmarking tool STR and the use of pricing algorithms.
- IHG shares fell 5 per cent on Monday, though wider market volatility linked to Middle East tensions also played a role.
The CMA has been clear that no conclusions have yet been drawn. "At this stage, no assumptions should be made about whether the law has been broken," the watchdog said, adding that it may issue a formal statement of objections only if it reaches a provisional finding of a competition law breach.
What's at stake
The investigation forms part of the CMA's broader push to ensure that emerging technologies including pricing algorithms are not misused in ways that harm consumers or suppress fair competition.
A pricing algorithm is a data-driven system that recommends or sets prices based on real-time and historical market data.
The CMA acknowledged such tools can benefit consumers through sharper competition and more responsive pricing, but warned they can also allow rivals to reduce commercial uncertainty and quietly align their behaviour.
CoStar, which owns STR, said it was "surprised" by the scrutiny, noting the platform has been used by firms and government bodies alike for decades to track market trends.
IHG said it would cooperate fully with the inquiry, while CoStar said it was "happy to provide the CMA with assistance." Hilton and Marriott were yet to comment.
IHG's London-listed shares slipped 5 per cent on the day the probe was announced, though analysts noted wider falls across markets amid escalating Middle East tensions.
