Expedia hit with antitrust class action over algorithm pricing scheme

Three consumers filed a class action accusing Expedia of using exclusionary contracts and pricing algorithms to inflate hotel prices across the entire booking market, not just on its own platform. The suit claims Expedia handles nearly 80% of gross booking value between U.S. consumers and hotels, giving it leverage to charge steep commissions that hotels recoup by raising prices everywhere.

The plaintiffs also allege Expedia punishes hotels that offer lower rates on their own sites or on rivals like Booking.com by demoting them in search results, forcing artificially inflated direct-booking prices. Major chains including Marriott, Hilton and Hyatt are named as affected by the alleged scheme, which plaintiffs say violates the Sherman and Clayton Acts.

The consumers are seeking to block the pricing practices and hold Expedia accountable before a Seattle jury. Expedia did not respond to a request for comment.

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