FIFA World Cup hospitality partner Match Services has had "all charges that it was leveraging 'abusive' prices in the hotel market with tickets for matches dismissed by CADE, Brazil's anti-competition authority," according to Paul Nicholson of INSIDE WORLD FOOTBALL. Brazilian tourism board Embratur conducted an investigation that led to charges in '13 by the Federal Public Prosecutor that Match, which had secured hotel accommodation for the championship across the country, was "artificially hiking room rates and using match tickets to push the prices up." One accusation was that with "so many rooms controlled by one party, the competitiveness in the market was effectively removed." Add in the "incentive of tickets with the rooms, then abuse of market position takes place." With prices for rooms in Brazil "rocketing the concerns were obvious." But the CADE decision ruled that the marketplace was "not artificially manipulated" by Match, in fact, "exactly the opposite and that World Cup demand was the driver of prices," clearing Match of all charges. It also cleared Match of making "abusive margins" on the room rate prices -- Match said that its packages "are discounted by 0% to 20% while its average sales margin was estimated at 18%, while the maximum sales margin charged to individual customers was 30%." The decision "could have an impact on the case of Ray Whelan," the British director of Match who was arrested at the World Cup in July, "accused of selling VIP World Cup tickets at inflated prices." Whelan was "eventually released on bail and was even allowed to travel" to the U.K., but will return to Brazil where he will attend court to face charges. However, with the finding by CADE in favor of Match, "serious cracks" are appearing in the case against Whelan (INSIDE WORLD FOOTBALL, 1/20).
