New Zealand regulators have given the green light to a merger between travel websites Wotif and Expedia because they are confident TripAdvisor and Google will keep the market competitive.

The Commerce Commission announced on Tuesday that it has cleared Expedia’s move to acquire up to 100 per cent of shares in Australian-based, Wotif.com Holdings Limited.

One of the potential issues the commission looked at was whether Wotif’s acquisition would allow Expedia and Priceline’s Booking.com to raise prices.

“The commission is satisfied that the merger will not have, or would not be likely to have, the effect of substantially lessening competition in all affected markets,” it said.

It says metasearch sites such as TripAdvisor and Google Hotel are playing an increasingly important role in the online market for accommodation bookings.

“We are satisfied that the online accommodation booking industry is dynamic,” said commission chairman Mark Berry.

The Australian Competition and Consumer Commission (ACCC) last month said it would not oppose the $A700 million deal, despite opposition from hotels who claim it will push up fees.

NZN