Booking com under Fire

In 2024, Booking com faced a series of significant fines in several European countries. These fines were imposed due to the company’s abuse of its dominant market position, which restricted competition and negatively impacted both consumers and the hotel industry. Here’s a detailed overview of each case.

1. Fine in Spain: €413 Million

• Date and Authority: The fine was imposed in August 2024 by the Spanish antitrust authority CNMC (Comisión Nacional de los Mercados y la Competencia).
• Amount: €413 million.
• Reason: The investigation revealed that Booking.com abused its dominant position in the Spanish market, where its market share ranged from 70% to 90%. The company imposed unfair conditions on hotels, prohibiting them from offering better prices on their own websites than on the Booking com platform. Additionally, Booking.com unilaterally applied discounts on hotel rooms, undermining the revenue of hotels​.
• Booking com’s Reaction: The company expressed its disagreement with the decision and plans to appeal the fine in the Spanish Supreme Court. Booking com also noted that the issue should be addressed according to the EU Digital Markets Act regulations​.

2. Fine in Hungary: €925,000

• Date and Authority: In July 2024, the Hungarian antitrust authority (GVH) imposed a second fine on Booking.com.
• Amount: €925,000.
• Reason: The fine was imposed for continuing unfair business practices, particularly using psychological pressure on customers by creating a sense of limited availability of rooms, encouraging quick bookings. This violation persisted despite a previous fine of €6.2 million imposed in 2020 for similar actions​.
• Booking com’s Reaction: Although Booking com did not publicly comment on this specific fine, the company is likely to continue challenging regulatory restrictions, as seen in its response to similar cases in other countries.

3. Fine in the Czech Republic

• Date and Authority: The fine was imposed by the Czech antitrust authority (ÚOHS).
• Amount: Although the specific amount was not as significant as in other countries, it was still substantial.
• Reason: Booking com was penalized for abusing its position, including requiring hotels to maintain equal or higher prices on the platform than on their own websites, creating an uneven competitive environment​.
• Booking com’s Reaction: The company’s reaction to this specific fine was not widely publicized, but it can be assumed that Booking.com, as in other instances, will seek to challenge such decisions.

Market issues and impact on the hotel industry

The fines imposed on Booking com highlight serious issues faced by both hotels and consumers.

For Hotels:

• Price Setting Restrictions: Hotels are unable to offer more competitive prices on their own websites, undermining their ability to compete.
• Financial Pressure: The unilateral application of discounts by Booking com reduces hotel revenues, particularly affecting small and independent hotels.

For Consumers:

• Limited Choice: Consumers are unable to access better prices and offers, as Booking com controls pricing.
• Increased Prices: Anti-competitive practices can lead to higher prices, negatively impacting travelers’ budgets.

The role of Your Price Booking in addressing the issue

Vyacheslav Nikitenko, the founder of the online hotel and short-term rental booking service Your Price Booking, emphasized that the issue of price parity hinders the growth of the hotel business. The primary goal of https://www.yourpricebooking.com/ is to solve this long-standing problem for hoteliers. The service will soon launch in the USA, Ukraine, and Poland, offering hotels the freedom to set and change prices whenever they wish. Your Price Booking’s commission for hotels is lower, at just 5%, while travelers book with no commission at all.

Conclusion

Antitrust authorities in various countries have started to respond more actively to the violations committed by Booking com, aiming to protect both market competition and consumer rights. These fines could have a long-term impact on the company’s behavior and business model, creating fairer conditions for all market participants. At the same time, new players like Your Price Booking can offer more flexible conditions that meet the needs of modern hoteliers and travelers.