The booking platform can no longer require hoteliers to offer the cheapest price and the best conditions, under a new European regulation.
End of monopoly for Booking in Europe. Hotels are now free to offer better rates on their own websites or through other channels than on the Dutch booking platform, announced the European Commission on Thursday November 14. Booking had been named in May as one of a handful of tech giants in the EU subject to new, stricter competition rules, alongside Alphabet, Amazon, Apple, Meta and Microsoft, under the new Digital Markets Regulation (DMA). Booking’s obligations therefore come into force this Thursday.
In concrete terms, this means that hotels, car rental companies and other tourism service providers, “can now offer different (and possibly better) prices and conditions on their own website or other channels than on Booking.com”explained the Commission in a press release. “Booking will not be allowed to increase commission rates or delist offers” of companies offering different prices on another site, she added. The European executive thus considers that “other platforms and service providers will be able to (compete with them) under fairer conditions, stimulating innovation and reducing prices.”.
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Hotels and other tourist services will also have access to “in real time and continuously to the data they and their customers generate through the use of Booking. “Business users can now choose to transfer the data they have generated on Booking.com to alternative platforms.” in order to “develop more innovative and personalized offers”..
To demonstrate its full compliance with the DMA, Booking has set out the measures it has taken in a report accessible on the Commission’s website. Brussels will “carefully analyze” this document and “evaluate” whether the measures implemented actually meet the obligations. “As of today, the deadline set by the European Commission, Booking.com meets the requirements of the Digital Markets Act in the European Economic Area, confirmed the company. We will continue to deliver the experience expected by our traveling customers and hosting partners, innovating to create trusted products and services that meet their evolving needs.”
In the event of infringement of the DMA rules, the Commission can impose fines of up to 10% of the company’s worldwide turnover, or up to 20% in the event of a repeat offence. In extreme cases, Brussels may even force the company concerned to sell certain activities or prohibit it from making certain acquisitions. The Digital Market Regulation (DMA), which came into force at the beginning of March, aims to monitor and curb abuses of dominant positions, to better protect the emergence and growth of start-ups in Europe and improve choice for users.