Hoteliers vs. Booking.com. Platform burdened with huge fine
The popular platform Booking.com is to pay as much as 400 million euros. Its representatives were accused of improper practices towards hoteliers. There were many allegations. The company wants to appeal the court’s ruling.
Travel enthusiasts often use the services of sites such as Booking.com. Through them, you can book accommodation, as well as access to attractions or cars and airport transfers. In one European country, a well-known platform has really gotten under the skin of hoteliers. It ended with a fine imposed by the commission.
Booking.com hit with huge fine
Booking.com has been ordered to pay more than 400 million euros for abuses against Spanish hoteliers. It is also required to make changes to its rules on unfair practices in the future. The ruling was issued by the Spanish Markets and Competition Commission.
This decision is the result of a dispute that has been going on for years. The Spanish Association of Hotel Directors and the Hotel Business Association of Madrid are involved in it. The platform has been accused of many things. Among other things, it is about abusing its dominant position on the market and using unfair terms of cooperation with hotels.
The clause in the contract that prevents hotels from offering lower prices on their own websites than those on Booking.com has proven harmful. In addition, the service reserves the right to unilaterally lower the price offered by the hotel on the website.
Booking.com wants to appeal
The current verdict against Booking.com is not yet final. This means that the platform’s owners can appeal the commission’s decision to the national court, and they have two months to do so. The proceedings themselves have been described as “unprecedented”.
Booking.com also issued a statement and stressed that it complies with the EU Digital Markets Act, which aims to regulate the activities of such companies across Europe, not just in individual countries.
It is worth noting that Booking, despite announcing its appeal, will have to face the consequences of its actions and adapt to new regulations. The imposed penalty may also be a warning to other platforms operating in a similar manner.