EU court upholds veto of Booking ETraveli deal

Booking Holdings (BKNG) stock fell despite Morgan Stanley initiating coverage with an Overweight rating and a $230 price target, arguing AI is an opportunity, not a threat. The bank highlighted BKNG's unique properties and direct booking mix. Morgan Stanley expects online travel bookings to grow 7% annually from 2026-2030. BKNG's Q2 results showed growth in room nights and gross bookings, with raised cost-savings targets.

Morgan Stanley initiated coverage of online travel agencies, rating Booking Holdings (Overweight, $230 PT), Airbnb (Equal-weight, $170 PT), and Expedia (Underweight, $235 PT). The bank favors companies with unique inventory and strong direct traffic, citing AI's potential to drive high-value traffic. Morgan Stanley expects online travel bookings to grow at a 7% CAGR from 2026 to 2030, with fragmented supply becoming more valuable.

Booking Holdings (BKNG) lost its appeal against the EU's decision to block its €1.63B acquisition of ETraveli. The EU court agreed the deal could strengthen Booking's dominance in hotel bookings. Booking may appeal or invest elsewhere. The company retains a strong position in online travel but may face slower growth without acquisitions.

The European Affordable Housing Act restricts short-term rentals, impacting companies like Airbnb and Booking.com. Italy's competition authority accuses Booking of prioritizing listings with higher commission rates, violating consumer protection rules.

Booking Holdings (BKNG) is considering an appeal after the EU's General Court upheld a veto on its acquisition of ETraveli Group. The court agreed with the 2023 European Commission decision, stating the acquisition would strengthen Booking's market position and harm competition. Booking disagrees and may appeal to the European Court of Justice. The deal was valued at approximately €1.63 billion.

The EU General Court upheld the European Commission's block of Booking Holdings' acquisition of Etraveli Group, confirming it would impede competition in the online travel-agency market. The court rejected Booking's arguments, agreeing with the Commission's assessment of potential anti-competitive effects. Booking may appeal. The decision highlights EU scrutiny of digital market consolidations.