The National Commission on Markets and Competition (CNMC) has imposed a historic fine on BOOKING.COM B.V. for anticompetitive practices that, for years, have severely affected hotels located in Spain and other Online Travel Agencies (OTAs). The fines amount to more than 400 million euros, resulting from two continuous and unique violations that breach both the Competition Defense Law (LDC) and the Treaty on the Functioning of the European Union (TFEU).
This sanctioning process reveals a system that unfairly favored Booking at the expense of its competitors and collaborators in the hotel sector. The illicit conduct identified ranges from imposing abusive commercial conditions on hotels to imposing restrictions that hindered competition from other booking platforms.
What practices were considered anticompetitive?
Booking’s abuse of its dominant position was manifested in two fundamental ways:
On the one hand, there was exploitative abuse, which involved imposing clearly disadvantageous commercial conditions on Spanish hotels. Booking limited the ability of hotels to compete on equal terms by restricting their freedom to offer better rates on their own direct sales channels. Moreover, it imposed contractual terms that disproportionately favored the platform. This abuse was also reflected in a lack of transparency regarding the impact of specific programs such as Genius, Preferente, and Preferente Plus, designed to attract bookings but whose real effects on the visibility and profitability of hotels were unclear and uncertain.
On the other hand, an exclusionary abuse was identified, aimed at restricting competition from other OTAs. Through predetermined ranking criteria that prioritized hotels with higher sales on Booking, hotels were incentivized to concentrate their efforts exclusively on this platform. Additionally, to access or remain in exclusive programs such as Preferente or Preferente Plus, hotels needed to be especially profitable for Booking, which limited their ability to offer attractive rates on other platforms or through their own channels.
The penalties imposed by CNMC
Given the seriousness of these practices, the CNMC has ordered Booking to radically change its mode of operation. In addition to the hefty fines imposed, it is required to:
•Eliminate narrow price parity clauses that prevented hotels from offering more competitive rates on their own websites.
•Modify the general contractual conditions, which must now be available in Spanish, applying Spanish law, and subject to the jurisdiction of Spanish courts. This represents an important step forward in protecting the interests of national hotels.
•Ensure greater transparency regarding how specific programs affect the visibility and profitability of hotels.
•Eliminate unfair criteria for ranking and access to preferred programs, allowing hotels to offer better conditions on other platforms without being penalized for it.
•Additionally, the resolution is referred to the Consultative Board for Public Procurement of the State, which will determine the extent of the prohibition against contracting with the public sector that may be imposed on Booking.
Can hotels claim damages?
If you are a hotelier and you believe that Booking has negatively affected your business, it’s natural to wonder if there’s something you can do about it. The answer is yes, and now is the right time to act.
Maybe Booking lowered your room prices without consulting you, directly impacting your revenue. Or perhaps, by preventing you from offering more competitive rates on your own website, you lost valuable bookings that could have improved your profitability. It is not uncommon for some hotels to also have seen their visibility compromised because Booking prioritized other establishments it considered more profitable, leaving those who did not meet their criteria out.
If you think your hotel has been harmed by these practices, you can analyze how these measures affected your business before and after their implementation. And if clear damage can be demonstrated, you have every right to claim what you are owed.
Is it feasible to file a claim against Booking?
We know that each hotel has a unique reality, but if you feel that Booking’s practices have caused real economic harm, it’s worth exploring your options. Although Booking might argue that its methods helped maximize occupancy, the reality is that with proper economic analysis, the damage caused can be clearly demonstrated.
Moreover, if these sanctions become final, they could pave the way for favorable precedents for hotels that decide to claim.
Why contact Mylegalinbox?
At Mylegalinbox, we are here to help you. We specialize in advising companies in the travel sector and fully understand how these practices can affect your business. We want to hear your case, analyze it thoroughly, and offer you clear and effective advice so you can claim what you deserve.
Don’t miss this opportunity. Write to us and let’s work together to defend your rights.