The Spanish competition watchdog CNMC has imposed a fine of more than 413 million euros on Booking .com. It is the highest fine ever received by the booking platform. The award of the mega fine was announced on Tuesday. According to the watchdog, Booking has abused its dominant market position and has violated European competition law. As a result, other hotels and (online) travel organizations in Spain were disadvantaged. The watchdog already investigated Booking in 2022 after complaints from the hotel sector. Booking would impose unfair commercial conditions on hotels. For example, affiliated hotels were not allowed to offer their rooms for a lower price than via Booking. At the same time, Booking retained the right to reduce the price of the accommodations offered. This controversial lowest price guarantee from Booking has been extended as of 1 July this year
has come to an end.
Hotels that also offer their rooms via Booking are now allowed to offer them elsewhere or on their own website for a lower price.
This was done under pressure from legislation from Brussels and the Spanish mega fine.
The measure applies in the Netherlands and other EU countries.
The CNMC says in a press release that Booking in Spain holds 70 to 90 percent of the market for online mediation for hotel reservations.
In Europe, the platform is said to have a market share of more than 60 percent. Booking Response A spokesperson for Booking says in a response that these figures need to be nuanced.
“That press release refers to footnote 3, which states that this definition of market share only applies to bookings made through third-party online travel platforms. This does not refer to the total market of hotel bookings in Spain or Europe.’ Read the full response here. In February this year, a preliminary opinion by the CNMC already announced that Booking was facing a mega fine from the Spanish competition authority.
Booking has stated that it strongly disagrees with the outcome of the CNMC investigation.
The company plans to appeal this “unprecedented decision.” (Photo Shutterstock).
