Booking.com is required to make a formal appearance.
In a significant move, over 10,000 hotels across Europe have joined forces in a class-action lawsuit against Booking.com, accusing the online booking giant of antitrust violations related to its "best price" clauses. These clauses, ruled illegal by the European Court of Justice (ECJ) in 2024, allegedly restricted hotels from offering cheaper rates on their own websites, potentially leading to exclusion from the platform.
The lawsuit, led by the Hotel Claims Alliance and heard in the Netherlands, where Booking.com is headquartered, is supported by over 30 national hotel associations across Europe, including Germany’s IHA and Italy’s Federalberghi. The European Hotel Alliance Hotrec is coordinating the legal effort. The hoteliers argue that Booking.com's practices have caused unfair conditions and excessive costs over two decades.
The "best price" clauses have been a contentious issue for many hotels, with some considering Booking.com indispensable despite the class-action lawsuit. These clauses, which have been removed from contracts within the European Economic Area following the ECJ ruling and the enforcement of the EU’s Digital Markets Act (DMA) 2024, have been a point of contention as they imposed penalties on hotels offering lower prices on their own websites.
According to Markus Luthe, CEO of the IHA, many hotels want to join the class-action lawsuit. The lawsuit could potentially allow hotels to offer lower prices on their own websites without fear of exclusion from Booking.com, a move that could challenge the platform's pricing policies.
Booking.com charges at least 12% commission from its German partner hotels, with additional payment fees, and it has been dictating prices for many hotels for years. Out of a room price of 100 euros, only 83 to 87 euros typically reach the hotel on Booking.com.
The number of German hotels joining the class-action lawsuit is growing rapidly, and the deadline for registration has been extended until the end of August. The lawsuit could have significant implications, particularly for the hotel industry in Europe, where Booking.com holds a market share of over 70% in online bookings.
This legal action is one of the largest class-action efforts by European hotels against Booking.com for unfair pricing practices spanning 20 years. As the case progresses, it will be interesting to see how it shapes the future of the online booking industry in Europe.
[1] European Hotel Claims Alliance. (n.d.). Retrieved from https://www.europeanhotelclaims.org/ [2] Digital Markets Act (DMA) 2024. (n.d.). Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12527-Digital-Markets-Act-DMA-proposal_en
- The European Hotel Claims Alliance, coordinating the legal effort, aims to enable hotels to offer lower prices on their own websites without fear of exclusion from Booking.com, a move that could potentially challenge the business practices of technology companies in the finance sector.
- The Hotel Claims Alliance's class-action lawsuit against Booking.com, supported by numerous national hotel associations, argues that technology-driven antitrust violations by online booking giants have caused unfair conditions and excessive costs for the finance sector of European business.
