Spain's competition authority, the CNMC, has imposed a multi-million euro fine on Booking.com.
The travel accommodation booking giant has been accused of abusing its dominant market position, as reported by Giga.
The fine, which exceeds 400 million euros (about $433 million), stems from practices that allegedly imposed unfair conditions on hotels and hindered competition.
Why Booking.com Was Fined
The CNMC’s decision to fine Booking.com is based on three main practices that were considered unfair:
Rate Parity Requirement: Booking.com required hotels to offer the same or better prices on its platform compared to what they might offer on their own websites. This "best price clause" kept prices high on Booking.com and limited competition.
Terms and Conditions in English: Booking.com provided its general terms and conditions to Spanish hotels only in English, making it difficult for many local businesses to fully understand or negotiate the terms.
Bonus Programs for Hotels: Booking.com offered bonus programs that encouraged hotels to prioritize sales through their platform, which made it harder for smaller, competing booking sites to succeed.
The "best price clause" was a key reason for the fine.
This practice stops hotels from offering lower prices on other platforms or their own websites, which is controversial.
It’s already banned in about half of the European Union countries, including Germany, where it has been illegal since 2015.
Booking.com has also been known to offer discounts to customers without consulting the hotels, adding to the friction between the platform and its partners.
What This Means for Travelers
For consumers in Spain and other countries where the best price clause is still allowed, this ruling could lead to more competitive pricing as hotels might be able to offer better deals outside of Booking.com.
For many other European consumers, including Germans, there will be no immediate change, as the best price clause has already been banned in many countries, and the practices under scrutiny are already being addressed by regulators.
