Booking.com has to pay a fine of 413 million euros
Booking.com is the market leader in Europe for online travel bookings. However, the company is alleged to have operated with "unfair business practices" in Spain, leading to a record fine from the competition authority. Booking.com has announced an appeal.
The booking platform, Booking.com, is facing a fine of around €413 million from the Spanish competition authority (CNMC) for abusing its dominant position on the Spanish market. This is the highest fine ever imposed by the CNMC. Booking.com has announced an appeal.
The Spanish authority has stated that Booking.com has imposed a series of "unfair business conditions" on Spanish hotels over the past five years. The company has allegedly harmed hotels and also used mechanisms on its booking platform to hinder the entry or growth of other online travel service providers.
The fine is composed of two parts: €206.6 million each for the unfair business conditions and for the competition violations against rival providers. "We strongly disagree with the outcome of the CNMC investigation and intend to appeal this unprecedented decision," stated Booking.com.
The company operates in a highly competitive sector and an industry that offers a high degree of choice for both companies and consumers. It offers supporting programs that partners can choose to participate in. The CNMC's decision does not take these factors into account.
The appropriate forum to address and evaluate most of these issues is the EU Digital Markets Act (DMA), as it provides the opportunity to "reach solutions that apply uniformly across Europe," explained Booking.com. The platform is the market leader in Europe for online travel bookings with a market share of 60%. The EU added the company to its list of significant digital companies subject to the DMA in May.
Booking.com is challenging the €413 million fine imposed by the Spanish competition authority due to alleged penalties for unfair business practices. The company's dispute centers around the imposition of unfair business conditions and competition violations against rival providers.
