(Adds the European Commission declines comment, details)
By Foo Yun Chee
BRUSSELS, Sept 1 (Reuters) - Booking Holdings' proposed 1.63 billion euro ($1.8 billion) acquisition of Swedish peer ETraveli Group is set to be vetoed by EU antitrust regulators because of concerns about the U.S. online travel agency's market power, people familiar with the matter said on Friday.
Booking, whose brands include Booking.com, Rentalcars, Priceline and Agoda announced the proposed acquisition of ETraveli, owned by private equity firm CVC Capital Partners, in November 2021.
The European Commission had in June warned that the deal could reinforce the U.S. online travel agency's dominance in the sector for hotel online travel agencies and boost its bargaining power with hotels.
It also said the deal may allow Booking to expand its ecosystem of travel services which include flights, accommodation, car rentals and attractions.
The Commission, which is scheduled to decide on the deal by Sept. 27, declined to comment.
Booking in July offered to show multiple hotel options to customers who book flights on its site in a bid to address regulatory concerns.
The Financial Times was the first to report the Commission's veto.
($1 = 0.9222 euros) (Reporting by Foo Yun Chee; editing by David Evans)
