Booking.com's Thousands of Hotels Sue in Legal Dispute
European Hotels Launch Class Action Lawsuit Against Booking.com
More than 10,000 hotels across Europe have collectively sued Booking.com for damages caused by its enforcement of illegal "best price" or "rate parity" clauses over approximately 20 years (2004–2024). The class-action lawsuit seeks compensation for financial harm stemming from these antitrust violations, following a 2024 ruling by the European Court of Justice (ECJ) that deemed such clauses illegal under EU competition law.
The suit is organized by the Hotel Claims Alliance and coordinated through HOTREC, the umbrella association representing hotels, restaurants, and cafes in Europe, with backing from over 30 national hotel associations including the German IHA and Italy’s Federalberghi. The legal proceedings are taking place in the Netherlands, where Booking.com is headquartered.
The EU’s Digital Markets Act (DMA) of 2024 played a crucial role by banning these parity clauses across the European Economic Area, reinforcing the ECJ ruling. Booking.com has removed the clauses following the DMA but continues to face claims for historic damages.
The lawsuit aims to recover damages estimated to be up to 30% of the commissions paid during the two decades affected by the unfair pricing rules. The case is one of the largest collective actions in the European hospitality sector and signals a strong pushback against digital market abuses.
The market share of Booking Holdings was 71% across Europe and 72.3% in Germany in 2023, according to a study by Hotrec and the University of Applied Sciences Western Switzerland. The lawsuit is a significant challenge to Booking.com’s past business model.
Alexandros Vassilikos, president of the European hotel alliance Hotrec, stated that European hoteliers have long suffered under unfair conditions and excessive costs due to enforced price ties. Alessandro Nucara, general director of the Italian association Federalberghi, stated that now is the time to come together and demand compensation.
However, Booking.com denies having received an official lawsuit so far, stating that it is an announcement by Hotrec, not a filed class action lawsuit. The company supports hotels with marketing, technology, and global visibility, according to the company. Booking.com rejects central legal arguments of the hotel associations, particularly the interpretation of an ECJ ruling from September 2024.
The deadline for registration in the class action lawsuit against Booking.com has been extended to August 29, due to overwhelming support. The lawsuit is ongoing; awaiting court proceedings.
References:
- EU Court Rules Against Best Price Clauses
- Hotels Sue Booking.com Over 'Best Price' Clauses
- Thousands of Hotels Sue Booking.com
- Hotels Sue Booking.com for Billions in Damages
- Booking.com Faces Lawsuit from Thousands of Hotels
- The class-action lawsuit, organized by the Hotel Claims Alliance and coordinated by HOTREC, is seeking compensation for financial harm stemming from antitrust violations arising from Booking.com's enforcement of illegal "best price" or "rate parity" clauses in the finance sector of the industry.
- The lawsuit, which is taking place in the Netherlands, aims to recover damages estimated to be up to 30% of the commissions paid by European hotels over approximately two decades, and it signals a strong pushback against digital market abuses in the business world.
