Brazil govt. launches probe in to FIFA’s alleged 'cartel' practices

PanARMENIAN.Net - Brazil's government has launched an investigation into whether FIFA's official accommodation agency was involved in "cartel" practices that could lead to hotel prices soaring during the 2014 World Cup, Belfast Telegraph said.

The government said a committee recently created to monitor excessive price rises during the tournament would check whether the actions by MATCH Services "can be characterised as cartel".

The committee will analyse the hotel reservations made by MATCH in the 12 World Cup host cities to check if they affect market prices.

Government officials will also meet the airline industry next week to make sure there are no excessive increases in travel prices during next year's tournament.

Brazil's president Dilma Rousseff created the monitoring committee following complaints by consumer advocates and amid reports of outrageous price increases in the tourism sector projected during the World Cup.

A study by Brazil's tourism board earlier this year showed that some hotel rates would be up to 500% more expensive during the month-long tournament in some hotels offered by the FIFA-appointed agency.

The government wants to know how many rooms MATCH has reserved in the host cities because, according to Brazilian law, anything more than 20% of the local market can be considered cartel.

"We want to make sure that the prices will be fair and won't be abusive to the Brazilian and the international consumers," said Gleisi Hoffmann, Ms Rousseff's chief of staff.

The probe of MATCH's practices and the start of discussions with the airlines were among some of responsibilities given to the committee after a meeting in Brasilia yesterday (October 24).

The committee will also be in charge of mapping out the prices and the quality of services in hotels, restaurants and airports.

MATCH and FIFA have previously denied all accusations of wrongdoing.

MATCH reached agreement with nearly 800 hotels in Brazil soon after the country was picked in 2007 to host the 2014 World Cup. The Swiss-based company says it does not regulate prices and notes that charges are set by the hotel owners and other tourism stakeholders.