Ten thousand European hotels initiate a collective legal action against Booking.com
Booking.com Faces Lawsuit Over Pricing Policy
A collective damage action has been launched against Booking.com by over 10,000 hotels across Europe, seeking damages from the online travel giant over its pricing policy from 2004 to 2024. The lawsuit, filed with the Dutch court, alleges that Booking.com's practices violated anti-competition laws, causing financial harm to the hotels involved.
The European Court of Justice (ECJ) ruled in September 2024 that both wide and narrow best price clauses, used by Booking.com, do not fall outside the EU's cartel prohibition under Article 101(1) TFEU. The court's decision established that such clauses are not indispensable to Booking.com's business model and are not necessary to prevent free-riding.
Hoteliers claim that these clauses restricted them from offering competitive prices directly to consumers on their own websites. As a result, commissions paid to Booking.com may have been inflated by at least 30%, according to the hotels. If successful, the lawsuit could result in a significant payment to the hotels involved.
Booking.com, founded in 1996 and headquartered in Amsterdam, is one of the largest online hotel booking systems in the market. It offers booking services for 475,000 hotels, motels, and resorts, as well as 2.9 million homes and apartments in 220 countries. The company also sells airline tickets in 55 countries and offers tours and events in over 1,300 cities.
However, Booking.com insists that the court's decision was based on a misinterpretation of the rule. The company has not yet been ordered to pay compensation to hotels for violating anti-competition laws in the EU from 2004 to 2024. The deadline for hotels to submit applications to join the class action against Booking.com has been extended to August 29.
It is important to note that Booking.com suspended its operations in Russia in March 2022. As of 2024, the case is still pending.
[1] Delano, Luxembourg-based publication reporting on the lawsuit. [2] Various news sources reporting on the ECJ's ruling and the subsequent class action against Booking.com.
The finance industry is closely watching the ongoing legal battle between Booking.com and the hotels, as the outcome could potentially impact the entire online travel industry's business practices. Despite the European Court of Justice's ruling, Booking.com maintains that its pricing policies fall within the legal framework, and no compensation has been ordered yet.
