Image: Crowne Plaza – one of IHG's hotel brands

Hotel deals between InterContinental Hotels Group (IHG) and online travel firms Expedia and booking.com broke competition law, according to the Office of Fair Trading (OFT).

The OFT has issued a Statement of Objections, which alleges that agreements involving the three groups had restricted the ability to discount the price of room-only accommodation.

A formal investigation was launched in September 2010, with the infringements designed to "increase barriers to entry and expansion" for other agents looking to gain market share.

It came after a small online travel agent had complained to the OFT that various hotel chains were preventing it from offering discounted sale prices on room-only accommodation.

OFT chief executive Clive Maxwell said: "We want people to benefit fully from being able to shop around online and get a better deal from discounters that are prepared to share their commission with customers.

"These are the OFT's provisional findings only. All parties will now have a full opportunity to respond to our Statement of Objections before we decide whether competition law has in fact been infringed."

In response, an IHG spokesperson said: "IHG considers its arrangements with the online booking agents to be compliant with competition laws and consistent with the long-standing approach of the global hotel industry.

"IHG is cooperating fully with the OFT's investigation, which commenced in 2010."

IHG operates properties under nine brands, including InterContinental Hotels and Resorts; Crowne Plaza; and Holiday Inn.

Click here for more information about the OFT's Statement of Objections and click here for IHG's response.