Competition Bureau takes action to strengthen competition and innovation in the travel industry

News Release

January 17, 2018 – OTTAWA, ON – Competition Bureau

The Competition Bureau announced today that it has reached an agreement with Softvoyage Inc., a Canadian developer of travel-related software, to address concerns of abuse of dominance.

The Bureau’s investigation focused on markets related to the supply of essential software for managing and distributing all-inclusive travel packages in Canada. The 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 Bureau’s findings were informed by interviews and documents provided voluntarily by Softvoyage and a number of other market participants, including travel agencies, tour operators, industry associations, and Softvoyage’s former and potential competitors.

As part of the agreement, Softvoyage will not enforce several types of exclusionary and restrictive contract terms that increased barriers to entry in the industry.

The consent agreement is registered with the Competition Tribunal and has the force of a court order.

The Bureau expects that this resolution will open the door to enhanced competition in the industry, resulting in greater innovation for Canadian travellers.

Quotes

“We commend Softvoyage for its collaboration in resolving our concerns. We believe that today’s agreement will promote greater competition and innovation in the travel industry, resulting in better choices for Canadian travellers.”

John Pecman,
Commissioner of Competition 

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