Thousands of European hotels aiming for compensation from Booking.com
European Hotels Launch Class-Action Lawsuit Against Booking.com
Over 10,000 European hotels have joined forces in a class-action lawsuit against Booking.com, seeking compensation for up to 20 years of alleged antitrust violations related to the platform's "best price" or price parity clauses. The legal action, coordinated by the Hotel Claims Alliance and supported by over 30 national hotel associations, aims to secure compensation for damages incurred between 2004 and 2024.
The clauses in question prevented hotels from offering lower prices outside the Booking.com platform, thereby restricting competition and undermining direct bookings. This practice, according to Alexandros Vassilikos, president of the HOTREC hospitality sector association, has long subjected European hoteliers to unfair conditions and excessive costs.
The lawsuit's legal basis stems from a 2024 ruling by the European Court of Justice (ECJ), which declared such best price clauses illegal under EU competition law. The ECJ found that platforms like Booking.com could operate without such restrictions, marking a pivotal regulatory shift that restricts online platforms from imposing such pricing constraints.
Booking.com, however, has contested the lawsuit, maintaining that partners still retain pricing control and that the ECJ ruling focused on the legal scope of parity clauses rather than concluding they were anti-competitive in Booking.com's specific case.
Despite this, the abolition of "best price" clauses by Booking.com has made little difference to travelers, according to a report. The case will now be heard by a Dutch court, with significant industry and legal attention on this landmark case.
The decline in the share of direct bookings over recent years is a concern for the hotel industry, as indicated by a study conducted by HOTREC and a Swiss hoteliers' college. In 2023, Booking Holdings held a market share of 71% across Europe, raising concerns about its market power and the need for a fairer digital marketplace.
In summary, the European hotel industry is demanding redress for alleged antitrust violations by Booking.com over a two-decade period. The lawsuit, which is currently ongoing, could have far-reaching implications for the digital marketplace, particularly in the online accommodation sector.
[1] European Court of Justice ruling, September 19, 2024 [2] European Union's Digital Markets Act (DMA) 2024 [3] Booking.com's response to the lawsuit [4] ECJ's clarification of the legal framework for online platforms [5] Market share of Booking Holdings in 2023
- The European hotel industry, facing concerns about market power, is pressing against Booking.com for potential antitrust violations spanning up to 20 years, citing the 2024 ruling by the European Court of Justice as their legal basis.
- This class-action lawsuit, aiming to secure compensation for damages, is part of a broader effort to foster a fairer digital marketplace, particularly in the online accommodation sector across Europe.
