OFT wants to review joint travel venture
The Office of Fair Trading (OFT) has asked the European Commission for the right to review the proposed joint travel business venture between Thomas Cook, the Co-operative Group and the Lichfield-based Midlands Co-operative Society.
According to the OFT, the joint venture "threatens significantly to affect competition in the supply of travel services, such as package holidays, via retail travel agency outlets in the UK".
The proposed venture would combine two of the largest high street travel agents. If it goes ahead, Thomas Cook will own 70 per cent of the new company, and the Manchester-headquartered Co-op 30 per cent.
If the OFT's request is granted, it intends to weigh up a decision to refer the proposed joint venture to the Competition Commission for "an in-depth investigation".
The OFT believes it is "the more appropriate authority to review the joint venture given that any adverse effects will be exclusively felt by consumers in the UK and also in light of the OFT's experience in assessing retail markets".
