The Judgment of the European Court of Justice Regards Booking.com's Best Price Clause - Moderate Impact on Travelers
The European Court is set to rule on Thursday at 9:30 AM regarding Booking.com's controversial 'best price clauses'. This dispute has been ongoing in German and Dutch courts for some time. Websites such as Booking.com, HRS, and Expedia allow users to browse and book a variety of hotels and other lodging options. When a reservation is made through these platforms, the operator charges a commission to the hotel, which gets added to the room price, effectively making the user pay indirectly.
If you book directly with the hotel, you won't be charged this commission, potentially reducing the price of the room. This is where Booking.com's alleged 'narrow best price clause' comes into play, which prevented hotels from offering rooms at lower prices through their own distribution channels. The German Federal Cartel Office and Federal Court of Justice (BGH) have declared this clause invalid. However, a court in Amsterdam is questioning if such agreements breach the European cartel ban and has referred the matter to the ECJ.
The impact on travelers is likely to be minimal as Booking.com eliminated the best price clauses in the European Economic Area this year. This move was justified by the EU Digital Markets Act (DMA), which intends to boost competition in digital services by imposing stricter rules on large platforms.
The 'best price clause' in question, as declared invalid by the German Federal Cartel Office and Federal Court of Justice, restricts hotels from offering lower prices through their own distribution channels. The court in Amsterdam is currently assessing if such clauses violate the European cartel ban.
