Booking.com fined by the CNMC: can hotels claim damages?

The CNMC (Spanish National Markets and Competition Commission) imposed a record fine on Booking.com B.V. for anti-competitive practices that for years affected hotels located in Spain and other online travel agencies (OTAs). The fines total €413.24 million, for two single and continuous infringements of the Spanish Competition Act (LDC) and the Treaty on the Functioning of the European Union (TFEU).

The proceedings bring to light a system that favoured Booking over its competitors and over the hotels it worked with: from unfair commercial terms for hotels to restrictions that made it harder for other booking platforms to compete.

What conduct did the CNMC penalise?

Exploitative abuse against hotels

Booking imposed clearly disadvantageous commercial terms on Spanish hotels. It limited their ability to compete on a level playing field by restricting their freedom to offer better rates on their own direct sales channels, and imposed contractual terms that were disproportionately favourable to the platform. There was also a lack of transparency about the impact of programmes such as Genius, Preferred and Preferred Plus, whose real effects on hotels’ visibility and profitability were unclear.

Exclusionary abuse against other OTAs

The ranking criteria prioritised hotels with higher sales on Booking, which encouraged them to concentrate their efforts on this platform. In addition, to join or remain in programmes such as Preferred or Preferred Plus, hotels had to be particularly profitable for Booking, which limited their ability to offer attractive rates on other platforms or on their own channels.

What measures did the CNMC impose?

In addition to the fines, the CNMC ordered Booking to change the way it operates:

• Remove narrow price parity clauses, which prevented hotels from offering more competitive rates on their own websites.
• Amend its terms and conditions, which must be available in Spanish, be governed by Spanish law and be subject to the Spanish courts.
• Provide more transparency on how the programmes affect hotels’ visibility and profitability.
• Remove unfair ranking criteria and criteria for access to preferred programmes, so that hotels can offer better terms on other platforms without being penalised.

The decision was also referred to the State Public Procurement Advisory Board, which must determine the scope of a possible ban on contracting with the public sector.

Can hotels claim damages from Booking?

Yes. A hotel that believes these practices harmed its business can bring a claim. Some examples of loss:

• Booking lowered the price of your rooms without consulting you, with a direct impact on your revenue.
• Because you could not offer more competitive rates on your website, you lost more profitable direct bookings.
• Your visibility fell because Booking prioritised properties it considered more profitable.

The starting point is to analyse how these measures affected your business before and after they were applied. If loss is proven, you are entitled to claim the corresponding compensation.

Is a claim viable?

Every hotel’s situation is different, but if Booking’s practices caused you real financial loss, it is worth exploring your options. Booking may argue that its methods helped maximise occupancy; a well-prepared economic analysis makes it possible to quantify the loss. And if the fines become final, they may open the door to favourable precedents for hotels that bring claims.