Softvoyage Inc., a Canadian software company that produces content management software used by tour operators to create vacation packages and manage inventory, and distribution software enabling the sale of vacation packages to Canadian consumers, agreed to drop restrictions in its agreements that the Competition Bureau alleged prevent competition.
The Bureau found that Softvoyage enjoyed a dominant position in both the content management software and distribution software markets, with market shares of over 90% in each.
The Bureau found that restrictive clauses in Softvoyage’s contracts impeded the ability of potential competitors to enter the market. In particular, these clauses restricted the distribution channels available to tour operator who use Softvoyage’s content management software.
Softvoyage has agreed to a consent agreement that has been filed in the Competition Tribunal. Softvoyage has agreed (among other things):
- To drop restrictive clauses the could prevent or dissuade Softvoyage’s clients, including tour operators and travel agencies, from using competing distribution software
- To collaborate with tour operators to develop external APIs integrated with its software to provide shopping and booking functions that can be used by third parties
- To distribute tour operator products that are managed using competing content management software
The agreement is in force for 7 years.