Price Parity Clauses and Online Platforms: Is There a New Way Forward?

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For years, competition authorities and courts across the EU have been asked how to deal with price parity clauses used by online platforms (also called most favoured nation clauses or MFNs), in particular in the hotel booking sector. These clauses enable the platform to require that suppliers do not offer lower prices or better terms on other platforms or on their own websites. Price parity clauses can be “wide”, if they prevent the supplier from offering better terms on other sales channels or they can be “narrow” if they prohibit the supplier from offering better terms on its own website.