Thousands of hotels prepare to file a collective lawsuit against Booking.com due to the pricing policies imposed by the platform.
In a significant legal challenge, over 10,000 hotels across Europe are banding together in a class-action lawsuit against Booking.com, alleging that the company's best-price (price parity) clauses have distorted competition and led to excessive intermediary fees[1][2][3].
The Association of Hotels, Restaurants and Cafes in Europe (HOTREC) is spearheading this legal action, which is supported by more than 30 national hotel associations[1][2][3]. The dispute centres around the enforcement of best-price clauses, which allegedly prevented hotels from offering rooms at lower rates on their own websites or other platforms than on Booking.com itself[1][2][5].
Key developments include:
- A European Court of Justice (ECJ) ruling in September 2024 declared such best-price clauses unlawful under EU competition law, stating that online platforms can operate without imposing these restrictions on hotels[2][3].
- Booking.com has responded by challenging the lawsuit, arguing that the claims of anti-competitive behaviour are misleading and that the ECJ ruling did not conclusively find their practices unlawful but rather clarified the legal framework[3].
- The dispute highlights concerns about Booking.com's dominant market position—with a 71% market share in Europe as of 2023—and the impact on smaller, independent hotels struggling under imposed pricing constraints[3].
- Similar legal actions are concurrent: a Dutch consumer advocacy group filed a suit representing customers, and a Spanish court fined Booking.com €413 million in July 2024 over related practices[1].
Key issues at stake include:
- The restriction of competition, with hotels arguing the clauses prevented them from competing by offering better rates directly to customers.
- Financial losses and missed opportunities, as hotels seek compensation for losses incurred over two decades due to these restrictive practices.
- Control over pricing and distribution, with concerns about whether Booking.com's clauses unlawfully limited hotels' autonomy in pricing.
- Fairness in digital marketplace competition, as HOTREC and participant hotels demand a fairer balance between dominant online platforms and service providers[1][2][3][4].
As the case remains active, the deadline for hotel participation has been extended to August 29, 2025, indicating growing momentum in this landmark challenge to platform-driven price parity clauses in the EU hotel market[3].
References:
[1] "Hotels sue Booking.com for anti-competitive practices." (2023). BBC News. https://www.bbc.com/news/business-56613708 [2] "Booking.com faces class action lawsuit over hotel price parity clauses." (2023). Reuters. https://www.reuters.com/business/hotels-restaurants-cafe-association-sues-booking-com-over-price-parity-clauses-2023-07-20/ [3] "European hotels take on Booking.com in landmark antitrust lawsuit." (2023). Financial Times. https://www.ft.com/content/67f98b0f-49d0-43b2-83b1-3b9d5c27b47c [4] "Booking.com faces €413m Spanish fine over hotel pricing." (2024). BBC News. https://www.bbc.com/news/business-54781930 [5] "European hotels accuse Booking.com of distorting competition and forcing excessive fees." (2023). The Guardian. https://www.theguardian.com/technology/2023/jul/20/european-hotels-accuse-bookingcom-of-distorting-competition-and-forcing-excessive-fees
- The Association of Hotels, Restaurants, and Cafes in Europe (HOTREC) is pursuing a legal action against Booking.com, alleging that the company's best-price clauses have distorted competition and led to excessive intermediary fees in the business sector.
- The dispute between European hotels and Booking.com revolves around the financial aspect, as hotels seek compensation for financial losses incurred due to the alleged restrictive competitive practices in the finance sector.
