The Competition and Markets Authority (CMA) has launched an investigation into potential anti-competitive behavior among major hotel chains, including Hilton, IHG Hotels, and Marriott. The investigation focuses on the suspected sharing of competitively sensitive information via the hotel data analytics tool STR, owned by CoStar.

Data analytics tools can enhance competition by allowing businesses to make informed commercial decisions, potentially leading to lower costs and more responsive pricing. However, the sharing of sensitive information among competitors can reduce market uncertainty and facilitate coordinated behavior, undermining competition.

At this stage, the CMA has not concluded whether any laws have been violated. The investigation will involve gathering information, and if evidence suggests a breach of competition law, the CMA may issue a statement of objections.

This investigation is part of the CMA's broader commitment to ensuring that new technologies promote fair competition and protect consumers. The CMA has previously outlined guidelines for businesses using algorithms to comply with competition laws.