Spain’s CNMC fined Booking.com $447M for unfair terms and restricting competition. The company imposed unfair price clauses on hotels and only offered legal terms in English. Booking.com plans to appeal the decision, stating the EU’s Digital Market Act should address these issues. The company must comply with new regulations by November or face further penalties.
Spain's CNMC fined Booking.com €413.24M ($447M) for abusing its market position. This fine follows a probe that started in October 2022 after complaints from hotel associations in Spain. Booking.com controlled 70%-90% of the market for online hotel bookings in Spain over the past five years.
Booking.com imposed terms that made it hard for rivals to compete. It banned hotels from offering lower prices on their own websites. Only the English version of terms had legal value, and the applicable law was Dutch, making legal actions costly for Spanish hotels. Transparency around subscription products was also lacking.
Booking.com restricted competition by using the total number of reservations to rank hotels. It encouraged hotels to focus their sales on its platform to maintain or access special programs. These practices hurt rival online travel agencies and limited choices for hotels.
Booking.com must cease these practices and avoid similar conduct. They have two months to appeal. A company spokesperson said they disagree with the decision and believe the EU’s Digital Market Act should address these issues. The company faces tighter EU regulations and must comply by November or risk further penalties.
Will Booking.com change its terms after the fine?
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