Booking.com Named ‘Gatekeeper’ by European Commission

Booking.com parent company Booking Holdings was named gatekeeper under the European Union’s Digital Markets Act (DMA) as part of European Commission efforts to ensure fair market practices and transparency.

As a designated gatekeeper, Booking.com must comply with DMA obligations within six months, including ensuring user choice and fair business access. Immediate obligations, such as reporting intended digital sector concentrations, are effective upon designation.

HOTREC, the umbrella association of hotels, restaurants, cafés and similar establishments in Europe, welcomed the announcement adding that European hoteliers are faced with too many unfair business practices and impairments by Booking.com that have a huge impact on business.

“After a decade-long struggle between European hotels and Booking.com, the DMA is now a real game changer. HOTREC is committed to constructive and transparent discussions with the European Commission and Booking.com,” said HOTREC President Alexandros Vassilikos.

Hoteliers have argued that Booking Holdings is preventing hotels from offering better prices on their own distribution channels than via the Booking.com platform. At the same time, Booking appears to have not sufficiently shared its data with hotel partners.

Photo source: HOTREC

“It is now important to ensure that the gatekeeper does not attempt to circumvent its new obligations and that it properly consults all affected stakeholders on its compliance solutions,” said German Hotel Association (IHA) Managing Director Markus Luthe.

HOTREC’s 2022 European Distribution Study found that Booking.com held a market share of over 70 percent making it the most dominant online travel agency.

The Commission will monitor gatekeepers’ compliance closely. Fines for failure to comply may reach up to 10 percent of global turnover, increasing to 20 percent for repeat violations.

Future companies may submit notifications for DMA consideration based on self-assessment.

“Holidaymakers will start benefiting from more choice and hotels will have more business opportunities. Following our decision, Booking.com joins the list of core platform services required to adhere to DMA rules,” said Commission Executive Vice-President in Charge of Competition Policy Margrethe Vestager.